Indicates Matter Stricken
Indicates New Matter
The Senate assembled at 10:00 A.M., the hour to which it stood adjourned, and was called to order by the PRESIDENT.
A quorum being present, the proceedings were opened with a devotion by the Chaplain as follows:
Beloved, hear the words of King David as he prayed in Psalm 28 (v. 1):
"To You I call, O Lord my Rock;
Do not turn a deaf ear to me,
For if You remain silent, I will be like those who have gone down to the pit."
Let us pray.
Heavenly Father, help us to remain diligent and alert and wise unto the day's end and of the session.
Where our proposals are finding favor in Your sight, encourage us!
Where we may be on the wrong track, in thought, or word, in small endeavors, or in large enterprises, we pray the covering of Your grace.
Grant to us, and to our people, such a fabric of character as will render unnecessary the multiplication of laws-of-the-land for the ordering of our common life.
To the Senate, Go in peace! Serve the Lord!
In the Name of Moses and the God of Mount Sinai, we pray.
Amen.
At 10:08 A.M., on motion of Senator LEVENTIS, the Senate receded from business until 11:00 A.M.
At 11:00 A.M., the Senate resumed.
The PRESIDENT called for Petitions, Memorials, Presentments of Grand Juries and such like papers.
The following appointments were transmitted by the Honorable James H. Hodges:
Initial Appointment, Clarendon County Magistrate, with term to commence April 30, 1998, and to expire April 30, 2002:
Ben Geer Alderman, Jr., P.O. Box 580, Manning, S.C. 29102 VICE Leigh Hughes Smith
Reappointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Ervin Brown, 1133 Schurlknight Road, St. Stephen, S.C. 29479
Reappointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
David G. Brown, 5928 Commonwealth Circle, Hanahan, S.C. 29406
Reappointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Ellen L. Karesh, 106 Braeford Court, Goose Creek, S.C. 29445
Reappointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
McGregor T. Dennis, P.O. Box 40, Bonneau, S.C. 29431
Reappointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Perry L. Murray, 108 Belknap Road, Goose Creek, S.C. 29445
Reappointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Elizabeth S. Harper, P.O. Box 875, Moncks Corner, S.C. 29461
Reappointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Edward L. Sessions, 538 Redbank Road, Goose Creek, S.C. 29445
Reappointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Harry Lee Wright, 1619 Old Highway 6, Cross, S.C. 29436
Initial Appointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Joseph Hermon Jefferson, Jr., 1375 Colonel Maham Drive, Pineville, S.C. 29468 VICE Thomas F. Mitchum
Initial Appointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Robert C. Mitchum, Sr., 161 Nobles Lane, Cordsville, S.C. 29464 VICE Oliver Levine
Reappointment, Aiken County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Carolyn P. Williams, 672 Kershaw Street, Aiken, S.C. 29801
Reappointment, Aiken County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Roger E. Edmonds, 630 Hampton Circle, Belvedere, S.C. 29841
Reappointment, Aiken County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Charles Terry Carter, 418 Eagle Street, Graniteville, S.C. 29829
Reappointment, Aiken County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Donna H. Williamson, 13 Hollow Creek Circle, Salley, S.C. 29137
Initial Appointment, Lancaster County Magistrate, with term to commence April 30, 1998, and to expire April 30, 2002:
Debra C. Dawkins, 304 Dixon Road, Lancaster, S.C. 29720 VICE Theresa B. Rollings
Reappointment, Fairfield County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
John J. Hood, Jr., Post Office Box 423, Winnsboro, S.C. 29180
Reappointment, Marlboro County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Ronald K. McDonald, 5646 Allen Ridge Road, Blenheim, S.C. 29516
Reappointment, Marlboro County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Sidney McLaurin Rogers, 114 Church Street, Clio, S.C. 29525
At 3:30 P.M., Senator HUTTO requested a leave of absence for Thursday, June 24, 1999.
At 3:30 P.M., Senator GREGORY requested a leave of absence for the balance of the week.
The following were introduced:
S. 907 (Word version) -- Senators Drummond, Alexander, Anderson, Bauer, Branton, Bryan, Cork, Courson, Courtney, Elliott, Fair, Ford, Giese, Glover, Gregory, Grooms, Hayes, Holland, Hutto, Jackson, Land, Leatherman, Leventis, Martin, Matthews, McConnell, McGill, Mescher, Moore, O'Dell, Passailaigue, Patterson, Peeler, Rankin, Ravenel, Reese, Russell, Ryberg, Saleeby, Setzler, Short, J. Verne Smith, Thomas, Waldrep, Washington and Wilson: A SENATE RESOLUTION TO EXPRESS THE SINCERE APPRECIATION AND GRATITUDE OF THE MEMBERS OF THE SOUTH CAROLINA SENATE TO THEIR GOOD FRIEND, WADE A. "BUBBA" GREEN OF RICHLAND COUNTY, FOR HIS MORE THAN TWENTY-SEVEN YEARS OF DEDICATION AND DEVOTED SERVICE AS SENIOR DIRECTOR OF GOVERNMENTAL RELATIONS FOR CLEMSON UNIVERSITY AND WISHING HIM ABUNDANT HAPPINESS UPON THE OCCASION OF HIS RETIREMENT ON JUNE 30, 1999.
The Senate Resolution was adopted.
S. 908 (Word version) -- Senator Courson: A CONCURRENT RESOLUTION CONGRATULATING MASHBURN CONSTRUCTION COMPANY ON ITS GROWTH FOR ALMOST A QUARTER OF A CENTURY INTO A THRIVING BUSINESS THAT NOW REQUIRES EXPANDED FACILITIES, AND EXPRESSING GRATITUDE FOR THE COMMUNITY LEADERSHIP AND EXEMPLARY CORPORATE CITIZENSHIP THAT MASHBURN'S OWNERS AND EMPLOYEES HAVE SHOWN.
The Concurrent Resolution was adopted, ordered sent to the House.
S. 909 (Word version) -- Senators Alexander and Drummond: A SENATE RESOLUTION COMMENDING DR. CONSTANTINE W. CURRIS FOR HIS EXEMPLARY SERVICE AS CLEMSON UNIVERSITY PRESIDENT DURING THE PAST FOUR YEARS, AND WISHING HIM AND HIS FAMILY WELL AS HE LEAVES CLEMSON UNIVERSITY TO BECOME THE PRESIDENT OF THE AMERICAN ASSOCIATION OF STATE COLLEGES AND UNIVERSITIES.
The Senate Resolution was adopted.
H. 4261 (Word version) -- Rep. Scott: A CONCURRENT RESOLUTION COMMENDING THE REVEREND DR. DOROTHY L. PEARSON OF RICHLAND COUNTY ON HER FORTY-ONE YEARS AS PASTOR OF MOUNT OLIVE BAPTIST CHURCH AND FOR HER MANY YEARS OF SPREADING THE GOSPEL THROUGHOUT THIS NATION.
The Concurrent Resolution was adopted, ordered returned to the House.
Columbia, S.C., June 23, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that it has appointed Reps. Miller, Maddox and Altman of the Committee of Conference on the part of the House on:
H. 3218 (Word version) -- Rep. Miller: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-1-120 SO AS TO MAKE CONFIDENTIAL THE INFORMATION PROVIDED BY A TAXPAYER IN A RETURN, REPORT, OR APPLICATION FILED WITH A COUNTY OR MUNICIAPLITY, TO PROVIDE EXCEPTIONS, AND TO PROVIDE A CRIMINAL PENALTY AND DISMISSAL FROM OFFICE OR POSITION FOR AN EMPLOYEE OR OFFICER WHO VIOLATES THIS REQUIREMENT, AND TO DISQUALIFY FOR FIVE YEARS FROM PUBLIC OFFICE A COUNTY OR MUNICIPAL OFFICER VIOLATING THIS REQUIREMENT; TO AMEND SECTION 12-54-240, AS AMENDED, RELATING TO THE CONFIDENTIALITY REQUIREMENTS OF STATE TAX RETURNS, SO AS TO EXTEND THIS REQUIREMENT TO THE ADMISSIONS LICENSE
H. 3218 (Word version) -- Rep. Miller: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-1-120 SO AS TO MAKE CONFIDENTIAL THE INFORMATION PROVIDED BY A TAXPAYER IN A RETURN, REPORT, OR APPLICATION FILED WITH A COUNTY OR MUNICIAPLITY, TO PROVIDE EXCEPTIONS, AND TO PROVIDE A CRIMINAL PENALTY AND DISMISSAL FROM OFFICE OR POSITION FOR AN EMPLOYEE OR OFFICER WHO VIOLATES THIS REQUIREMENT, AND TO DISQUALIFY FOR FIVE YEARS FROM PUBLIC OFFICE A COUNTY OR MUNICIPAL OFFICER VIOLATING THIS REQUIREMENT; TO AMEND SECTION 12-54-240, AS AMENDED, RELATING TO THE CONFIDENTIALITY REQUIREMENTS OF STATE TAX RETURNS, SO AS TO EXTEND THIS REQUIREMENT TO THE ADMISSIONS LICENSE TAX; AND TO AMEND SECTION 30-4-40, AS AMENDED, RELATING TO MATTERS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, SO AS TO CONFORM THE EXEMPTION TO THE CONFIDENTIALITY PROVISIONS PROVIDED BY THIS ACT.
On motion of Senator McCONNELL, with unanimous consent, the Report of the Committee of Conference was taken up for immediate consideration.
Senator McCONNELL spoke on the report.
On motion of Senator McCONNELL, the Report of the Committee of Conference to H. 3218 was adopted as follows:
The COMMITTEE OF CONFERENCE, to whom was referred:
H. 3218 (Word version) -- Rep. Miller: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-1-120 SO AS TO MAKE CONFIDENTIAL THE INFORMATION PROVIDED BY A TAXPAYER IN A RETURN, REPORT, OR APPLICATION FILED WITH A COUNTY OR MUNICIPALITY, TO PROVIDE EXCEPTIONS, AND TO PROVIDE A CRIMINAL PENALTY AND DISMISSAL FROM OFFICE OR POSITION FOR AN EMPLOYEE OR OFFICER WHO VIOLATES THIS REQUIREMENT, AND TO DISQUALIFY FOR FIVE YEARS FROM PUBLIC OFFICE A COUNTY OR MUNICIPAL OFFICER VIOLATING THIS REQUIREMENT; TO AMEND SECTION 12-54-240, AS AMENDED, RELATING TO THE CONFIDENTIALITY REQUIREMENTS OF STATE TAX RETURNS, SO AS TO EXTEND THIS REQUIREMENT TO THE ADMISSIONS LICENSE TAX; AND TO AMEND SECTION 30-4-40, AS AMENDED, RELATING TO MATTERS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, SO AS TO CONFORM THE EXEMPTION TO THE CONFIDENTIALITY PROVISIONS PROVIDED BY THIS ACT.
Beg leave to report that they have duly and carefully considered the same and recommend:
That the same do pass with the following amendments: (Reference is to Printer's Version 6/3/99--S.)
Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:
/ SECTION 1. Article 1, Chapter 1, Title 6 of the 1976 Code is amended by adding:
"Section 6-1-120. (A) Except in accordance with a proper judicial order or as otherwise provided by law, it is unlawful for an officer or employee of a county or municipality, or the agent of such an officer or employee to divulge or make known in any manner the information provided by a taxpayer included in a report, tax return, or application required to be filed by the taxpayer with that county or municipality, pursuant to a county or municipal ordinance imposing a:
(1) tax authorized under Article 5 or Article 7 of this chapter;
(2) business license tax authorized under Section 4-9-30(12) or Section 5-7-30;
(3) fee the measure of which is (a) gross proceeds of sales of goods or services, or (b) paid admissions to a place of amusement.
(B) Nothing in this section prohibits the:
(1) publication of statistics classified to prevent the identification of particular reports, returns, or applications and the information on them; and
(2) inspection of reports, returns, or applications and the information included on them by an officer or employee of the county or municipality or an agent retained by an officer or employee in connection with audits of the taxpayer, appeals by the taxpayer, and collection efforts in connection with the tax or fee which is the subject of the return, report, or application.
(C) A person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not more than one thousand dollars or by imprisonment for not more than one year, or both. In addition, if the person convicted is an officer or employee of the county or municipality, the offender is dismissed from the office or position held and is disqualified from holding a public office in this State for five years following the conviction."
SECTION 2. Section 12-54-240(A) of the 1976 Code, as last amended by Act 76 of 1995, is further amended to read:
"(A) Except in accordance with proper judicial order or as otherwise provided by law, it is unlawful for a person to divulge or make known in any manner any particulars set forth or disclosed in any report or return required under Chapters 6, 8, 11, 13, 16, 20, or 36 or Article 17 of Chapter 21 of this title. A person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not more than one thousand dollars or by imprisonment for not more than one year, or both. If the offender is an officer or an employee of the State, he must be dismissed from office and is disqualified from holding any public office in this State for a period of five years thereafter. If the offender is an officer or employee of a company retained by the State on an independent contract basis under subsection (B)(3) of this section or Section 12-4-350, the contract is immediately terminated and the company is not eligible to contract with the State for this purpose for a period of five years thereafter."
SECTION 3 This act takes effect upon approval by the Governor. /
Amend title to conform.
/s/ Glenn F. McConnell /s/ Vida O. Miller /s/ Robert Ford /s/ John Graham Altman, III /s/ Luke A. Rankin /s/ J. Cordell Maddox On Part of the Senate. On Part of the House.
, and a message was sent to the House accordingly.
Columbia, S.C., June 23, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that it has adopted the Report of the Committee of Conference on:
H. 3218 (Word version) -- Rep. Miller: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-1-120 SO AS TO MAKE CONFIDENTIAL THE INFORMATION PROVIDED BY A TAXPAYER IN A RETURN, REPORT, OR APPLICATION FILED WITH A COUNTY OR MUNICIAPLITY, TO PROVIDE EXCEPTIONS, AND TO PROVIDE A CRIMINAL PENALTY AND DISMISSAL FROM OFFICE OR POSITION FOR AN EMPLOYEE OR OFFICER WHO VIOLATES THIS REQUIREMENT, AND TO DISQUALIFY FOR FIVE YEARS FROM PUBLIC OFFICE A COUNTY OR MUNICIPAL OFFICER VIOLATING THIS REQUIREMENT; TO AMEND SECTION 12-54-240, AS AMENDED, RELATING TO THE CONFIDENTIALITY REQUIREMENTS OF STATE TAX RETURNS, SO AS TO EXTEND THIS REQUIREMENT TO THE ADMISSIONS LICENSE TAX; AND TO AMEND SECTION 30-4-40, AS AMENDED, RELATING TO MATTERS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, SO AS TO CONFORM THE EXEMPTION TO THE CONFIDENTIALITY PROVISIONS PROVIDED BY THIS ACT.
Very respectfully,
Speaker of the House
Received as information.
Columbia, S.C., June 23, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that the Report of the Committee of Conference having been adopted by both Houses, and this Bill having been read three times in each House, it
Received as information.
Columbia, S.C., June 23, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that it refuses to concur in the amendments proposed by the Senate to:
H. 3359 (Word version) -- Reps. Dantzler, Bailey, R. Smith, Hinson, Rodgers, Witherspoon, Chellis, McKay, McGee, Law, Simrill, Rhoad, Littlejohn and Bowers: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-37-224 SO AS TO PROVIDE THAT A MOTOR HOME ON WHICH THE INTEREST PORTION OF INDEBTEDNESS IS DEDUCTIBLE PURSUANT TO THE INTERNAL REVENUE CODE AS AN INTEREST EXPENSE ON A QUALIFIED PRIMARY OR SECOND RESIDENCE IS ALSO A PRIMARY OR SECOND RESIDENCE FOR PURPOSES OF AD VALOREM PROPERTY TAXATION IN THIS STATE AND IS CONSIDERED REAL PROPERTY RATHER
H. 3359 (Word version) -- Reps. Dantzler, Bailey, R. Smith, Hinson, Rodgers, Witherspoon, Chellis, McKay, McGee, Law, Simrill, Rhoad, Littlejohn and Bowers: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-37-224 SO AS TO PROVIDE THAT A MOTOR HOME ON WHICH THE INTEREST PORTION OF INDEBTEDNESS IS DEDUCTIBLE PURSUANT TO THE INTERNAL REVENUE CODE AS AN INTEREST EXPENSE ON A QUALIFIED PRIMARY OR SECOND RESIDENCE IS ALSO A PRIMARY OR SECOND RESIDENCE FOR PURPOSES OF AD VALOREM PROPERTY TAXATION IN THIS STATE AND IS CONSIDERED REAL PROPERTY RATHER THAN PERSONAL PROPERTY FOR PROPERTY TAX PURPOSES.
On motion of Senator LAND, the Senate insisted upon its amendments to H. 3359 and asked for a Committee of Conference.
Whereupon, the PRESIDENT Pro Tempore appointed Senators LAND, MARTIN and PATTERSON of the Committee of Conference on the part of the Senate and a message was sent to the House accordingly.
Columbia, S.C., June 23, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that it has appointed Reps. Dantzler, Robinson and Koon of the Committee of Conference on the part of the House on:
H. 3359 (Word version) -- Reps. Dantzler, Bailey, R. Smith, Hinson, Rodgers, Witherspoon, Chellis, McKay, McGee, Law, Simrill, Rhoad, Littlejohn and Bowers: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-37-224 SO AS TO PROVIDE THAT A MOTOR HOME ON WHICH THE INTEREST PORTION OF INDEBTEDNESS IS DEDUCTIBLE PURSUANT TO THE INTERNAL REVENUE CODE AS AN INTEREST EXPENSE ON A QUALIFIED PRIMARY OR SECOND
Received as information.
H. 3641 (Word version) -- Reps. Harrison, Seithel, Altman, Wilkins and Edge: A BILL TO AMEND CHAPTER 1, TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LOCAL GOVERNMENT, BY ADDING ARTICLE 9 SO AS TO PROVIDE FOR THE IMPOSITION OF A DEVELOPMENT IMPACT FEE BY A COUNTY OR MUNICIPALITY BY ORDINANCE; TO PROVIDE FOR AN ADVISORY COMMITTEE FOR RECOMMENDING, AND PROCEDURES FOR ADOPTING, LAND USE ASSUMPTIONS, A CAPITAL IMPROVEMENTS PLAN, AND IMPACT FEES; TO PROVIDE FOR COMPUTATION OF THE PROPORTIONATE SHARE OF COSTS OF NEW PUBLIC FACILITIES NEEDED TO SERVE NEW GROWTH AND DEVELOPMENT; AND TO LIMIT THE USES OF THE REVENUE COLLECTED FROM A DEVELOPMENT IMPACT FEE TO APPLICATION TOWARD THE INCREASED COST OF SERVING NEW GROWTH AND DEVELOPMENT.
On motion of Senator McCONNELL, with unanimous consent, the Report of the Committee of Conference was taken up for immediate consideration.
Senator McCONNELL spoke on the report.
On motion of Senator McCONNELL, with unanimous consent, Free Conference Powers were granted.
Whereupon, the PRESIDENT Pro Tempore appointed Senators McCONNELL, CORK and RANKIN to the Committee of Free
On motion of Senator McCONNELL, the Report of the Committee of Free Conference to H. 3641 was adopted as follows:
The COMMITTEE OF FREE CONFERENCE, to whom was referred:
H. 3641 (Word version) -- Reps. Harrison, Seithel, Altman, Wilkins and Edge: A BILL TO AMEND CHAPTER 1, TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LOCAL GOVERNMENT, BY ADDING ARTICLE 9 SO AS TO PROVIDE FOR THE IMPOSITION OF A DEVELOPMENT IMPACT FEE BY A COUNTY OR MUNICIPALITY BY ORDINANCE; TO PROVIDE FOR AN ADVISORY COMMITTEE FOR RECOMMENDING, AND PROCEDURES FOR ADOPTING, LAND USE ASSUMPTIONS, A CAPITAL IMPROVEMENTS PLAN, AND IMPACT FEES; TO PROVIDE FOR COMPUTATION OF THE PROPORTIONATE SHARE OF COSTS OF NEW PUBLIC FACILITIES NEEDED TO SERVE NEW GROWTH AND DEVELOPMENT; AND TO LIMIT THE USES OF THE REVENUE COLLECTED FROM A DEVELOPMENT IMPACT FEE TO APPLICATION TOWARD THE INCREASED COST OF SERVING NEW GROWTH AND DEVELOPMENT.
Beg leave to report that they have duly and carefully considered the same and recommend:
That the same do pass with the following amendments: (Reference is to Printer's Version 6/3/99--S.)
Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:
/ SECTION 1. Chapter 1, Title 6 of the 1976 Code is amended by adding:
Section 6-1-910. This article may be cited as the 'South Carolina Development Impact Fee Act'.
Section 6-1-920. As used in this article:
(1) 'Affordable housing' means housing affordable to families whose incomes do not exceed eighty percent of the median income for
(2) 'Capital improvements' means improvements with a useful life of five years or more, by new construction or other action, which increase or increased the service capacity of a public facility.
(3) 'Capital improvements plan' means a plan that identifies capital improvements for which development impact fees may be used as a funding source.
(4) 'Connection charges' and 'hookup charges' mean charges for the actual cost of connecting a property to a public water or public sewer system, limited to labor and materials involved in making pipe connections, installation of water meters, and other actual costs.
(5) 'Developer' means an individual or corporation, partnership, or other entity undertaking development.
(6) 'Development' means construction or installation of a new building or structure, or a change in use of a building or structure, any of which creates additional demand and need for public facilities. A building or structure shall include, but not be limited to, modular buildings and manufactured housing. 'Development' does not include alterations made to existing single-family homes.
(7) 'Development approval' means a document from a governmental entity which authorizes the commencement of a development.
(8) 'Development impact fee' or 'impact fee' means a payment of money imposed as a condition of development approval to pay a proportionate share of the cost of system improvements needed to serve the people utilizing the improvements. The term does not include:
(a) a charge or fee to pay the administrative, plan review, or inspection costs associated with permits required for development;
(b) connection or hookup charges;
(c) amounts collected from a developer in a transaction in which the governmental entity has incurred expenses in constructing capital improvements for the development if the owner or developer has agreed to be financially responsible for the construction or installation of the capital improvements;
(d) fees authorized by Article 3 of this chapter.
(9) 'Development permit' means a permit issued for construction on or development of land when no subsequent building permit issued pursuant to Chapter 9 of Title 6 is required.
(10) 'Fee payor' means the individual or legal entity that pays or is required to pay a development impact fee.
(11) 'Governmental entity' means a county, as provided in Chapter 9, Title 4, and a municipality, as defined in Section 5-1-20.
(12) 'Incidental benefits' are benefits which accrue to a property as a secondary result or as a minor consequence of the provision of public facilities to another property.
(13) 'Land use assumptions' means a description of the service area and projections of land uses, densities, intensities, and population in the service area over at least a ten-year period.
(14) 'Level of service' means a measure of the relationship between service capacity and service demand for public facilities.
(15) 'Local planning commission' means the entity created pursuant to Article 1, Chapter 29, Title 6.
(16) 'Project' means a particular development on an identified parcel of land.
(17) 'Proportionate share' means that portion of the cost of system improvements determined pursuant to Section 6-1-990 which reasonably relates to the service demands and needs of the project.
(18) 'Public facilities' means:
(a) water supply production, treatment, laboratory, engineering, administration, storage, and transmission facilities;
(b) waste water collection, treatment, laboratory, engineering, administration, and disposal facilities;
(c) solid waste and recycling collection, treatment, and disposal facilities;
(d) roads, streets, and bridges including, but not limited to, rights-of-way and traffic signals;
(e) storm water transmission, retention, detention, treatment, and disposal facilities and flood control facilities;
(f) public safety facilities, including law enforcement, fire, emergency medical and rescue, and street lighting facilities.
(g) capital equipment and vehicles, with an individual unit purchase price of not less than one hundred thousand dollars including, but not limited to, equipment and vehicles used in the delivery of public safety services, emergency preparedness services, collection and disposal of solid waste, and storm water management and control.
(h) parks, libraries, and recreational facilities.
(19) 'Service area' means, based on sound planning or engineering principles, or both, a defined geographic area in which specific public facilities provide service to development within the area defined. Provided, however, that no provision in this article may be interpreted
(20) 'Service unit' means a standardized measure of consumption, use, generation, or discharge attributable to an individual unit of development calculated in accordance with generally accepted engineering or planning standards for a particular category of capital improvements.
(21) 'System improvements' means capital improvements to public facilities which are designed to provide service to a service area.
(22) 'System improvement costs' means costs incurred for construction or reconstruction of system improvements, including design, acquisition, engineering, and other costs attributable to the improvements, and also including the costs of providing additional public facilities needed to serve new growth and development. System improvement costs do not include:
(a) construction, acquisition, or expansion of public facilities other than capital improvements identified in the capital improvements plan;
(b) repair, operation, or maintenance of existing or new capital improvements;
(c) upgrading, updating, expanding, or replacing existing capital improvements to serve existing development in order to meet stricter safety, efficiency, environmental, or regulatory standards;
(d) upgrading, updating, expanding, or replacing existing capital improvements to provide better service to existing development;
(e) administrative and operating costs of the governmental entity; or
(f) principal payments and interest or other finance charges on bonds or other indebtedness except financial obligations issued by or on behalf of the governmental entity to finance capital improvements identified in the capital improvements plan.
Section 6-1-930. (A) (1) Only a governmental entity that has a comprehensive plan, as provided in Chapter 29 of this title, and which complies with the requirements of this article may impose a development impact fee. If a governmental entity has not adopted a comprehensive plan, but has adopted a capital improvements plan which substantially complies with the requirements of Section 6-1-960(B), then it may impose a development impact fee. A governmental entity may not impose an impact fee, regardless of how it is designated, except as provided in this article. However, a special purpose district or public service district which (a) provides fire
(2) Before imposing a development impact fee on residential units, a governmental entity shall prepare a report which estimates the effect of recovering capital costs through impact fees on the availability of affordable housing within the political jurisdiction of the governmental entity.
(B)(1) An impact fee may be imposed and collected by the governmental entity only upon the passage of an ordinance approved by a positive majority, as defined in Article 3 of this chapter.
(2) The amount of the development impact fee must be based on actual improvement costs or reasonable estimates of the costs, supported by sound engineering studies.
(3) An ordinance authorizing the imposition of a development impact fee must:
(a) establish a procedure for timely processing of applications for determinations by the governmental entity of development impact fees applicable to all property subject to impact fees and for the timely processing of applications for individual assessment of development impact fees, credits, or reimbursements allowed or paid under this article;
(b) include a description of acceptable levels of service for system improvements; and
(c) provide for the termination of the impact fee.
(C) A governmental entity shall prepare and publish an annual report describing the amount of all impact fees collected, appropriated, or spent during the preceding year by category of public facility and service area.
(D) Payment of an impact fee may result in an incidental benefit to property owners or developers within the service area other than the fee payor, except that an impact fee that results in benefits to property owners or developers within the service area, other than the fee payor, in an amount which is greater than incidental benefits is prohibited.
Section 6-1-940. A governmental entity imposing an impact fee must provide in the impact fee ordinance the amount of impact fee due for each unit of development in a project for which an individual building permit or certificate of occupancy is issued. The governmental entity is bound by the amount of impact fee specified in the ordinance and may not charge higher or additional impact fees for the same
(1) include an explanation of the calculation of the impact fee, including an explanation of the factors considered pursuant to this article;
(2) specify the system improvements for which the impact fee is intended to be used;
(3) inform the developer that he may pay a project's proportionate share of system improvement costs by payment of impact fees according to the fee schedule as full and complete payment of the developer's proportionate share of system improvements costs;
(4) inform the fee payor that:
(a) he may negotiate and contract for facilities or services with the governmental entity in lieu of the development impact fee as defined in Section 6-1-1050;
(b) he has the right of appeal, as provided in Section 6-1-1030;
(c) the impact fee must be paid no earlier than the time of issuance of the building permit or issuance of a development permit if no building permit is required.
Section 6-1-950. (A) The governing body of a governmental entity begins the process for adoption of an ordinance imposing an impact fee by enacting a resolution directing the local planning commission to conduct the studies and to recommend an impact fee ordinance, developed in accordance with the requirements of this article. Under no circumstances may the governing body of a governmental entity impose an impact fee for any public facility which has been paid for entirely by the developer.
(B) Upon receipt of the resolution enacted pursuant to subsection (A), the local planning commission shall develop, within the time designated in the resolution, and make recommendations to the governmental entity for a capital improvements plan and impact fees by service unit. The local planning commission shall prepare and adopt its recommendations in the same manner and using the same procedures as those used for developing recommendations for a comprehensive plan as provided in Article 3, Chapter 29, Title 6, except as otherwise provided in this article. The commission shall review and update the capital improvements plan and impact fees in the same manner and on the same review cycle as the governmental entity's comprehensive plan or elements of it.
Section 6-1-960. (A) The local planning commission shall recommend to the governmental entity a capital improvements plan which may be adopted by the governmental entity by ordinance. The recommendations of the commission are not binding on the governmental entity, which may amend or alter the plan. After reasonable public notice, a public hearing must be held before final action to adopt the ordinance approving the capital improvements plan. The notice must be published not less than thirty days before the time of the hearing in at least one newspaper of general circulation in the county. The notice must advise the public of the time and place of the hearing, that a copy of the capital improvements plan is available for public inspection in the offices of the governmental entity, and that members of the public will be given an opportunity to be heard.
(B) The capital improvements plan must contain:
(1) a general description of all existing public facilities, and their existing deficiencies, within the service area or areas of the governmental entity, a reasonable estimate of all costs, and a plan to develop the funding resources, including existing sources of revenues, related to curing the existing deficiencies including, but not limited to, the upgrading, updating, improving, expanding, or replacing of these facilities to meet existing needs and usage;
(2) an analysis of the total capacity, the level of current usage, and commitments for usage of capacity of existing public facilities, which must be prepared by a qualified professional using generally accepted principles and professional standards;
(3) a description of the land use assumptions;
(4) a definitive table establishing the specific service unit for each category of system improvements and an equivalency or conversion table establishing the ratio of a service unit to various types of land uses, including residential, commercial, agricultural, and industrial, as appropriate;
(5) a description of all system improvements and their costs necessitated by and attributable to new development in the service area, based on the approved land use assumptions, to provide a level of service not to exceed the level of service currently existing in the community or service area, unless a different or higher level of service is required by law, court order, or safety consideration;
(6) the total number of service units necessitated by and attributable to new development within the service area based on the land use assumptions and calculated in accordance with generally accepted engineering or planning criteria;
(7) the projected demand for system improvements required by new service units projected over a reasonable period of time not to exceed twenty years;
(8) identification of all sources and levels of funding available to the governmental entity for the financing of the system improvements; and
(9) a schedule setting forth estimated dates for commencing and completing construction of all improvements identified in the capital improvements plan.
(C) Changes in the capital improvements plan must be approved in the same manner as approval of the original plan.
Section 6-1-970. The following structures or activities are exempt from impact fees:
(1) rebuilding the same amount of floor space of a structure that was destroyed by fire or other catastrophe;
(2) remodeling or repairing a structure that does not result in an increase in the number of service units;
(3) replacing a residential unit, including a manufactured home, with another residential unit on the same lot, if the number of service units does not increase;
(4) placing a construction trailer or office on a lot during the period of construction on the lot;
(5) constructing an addition on a residential structure which does not increase the number of service units;
(6) adding uses that are typically accessory to residential uses, such as a tennis court or a clubhouse, unless it is demonstrated clearly that the use creates a significant impact on the system's capacity; and
(7) all or part of a particular development project if:
(a) the project is determined to create affordable housing; and
(b) the exempt development's proportionate share of system improvements is funded through a revenue source other than development impact fees.
Section 6-1-980. (A) The impact fee for each service unit may not exceed the amount determined by dividing the costs of the capital improvements by the total number of projected service units that potentially could use the capital improvement. If the number of new service units projected over a reasonable period of time is less than the total number of new service units shown by the approved land use assumptions at full development of the service area, the maximum impact fee for each service unit must be calculated by dividing the costs of the part of the capital improvements necessitated by and
(B) An impact fee must be calculated in accordance with generally accepted accounting principles.
Section 6-1-990. (A) The impact fee imposed upon a fee payor may not exceed a proportionate share of the costs incurred by the governmental entity in providing system improvements to serve the new development. The proportionate share is the cost attributable to the development after the governmental entity reduces the amount to be imposed by the following factors:
(1) appropriate credit, offset, or contribution of money, dedication of land, or construction of system improvements; and
(2) all other sources of funding the system improvements including funds obtained from economic development incentives or grants secured which are not required to be repaid.
(B) In determining the proportionate share of the cost of system improvements to be paid, the governmental entity imposing the impact fee must consider the:
(1) cost of existing system improvements resulting from new development within the service area or areas;
(2) means by which existing system improvements have been financed;
(3) extent to which the new development contributes to the cost of system improvements;
(4) extent to which the new development is required to contribute to the cost of existing system improvements in the future;
(5) extent to which the new development is required to provide system improvements, without charge to other properties within the service area or areas;
(6) time and price differentials inherent in a fair comparison of fees paid at different times; and
(7) availability of other sources of funding system improvements including, but not limited to, user charges, general tax levies, intergovernmental transfers, and special taxation.
Section 6-1-1000. A developer required to pay a development impact fee may not be required to pay more than his proportionate share of the costs of the project, including the payment of money or contribution or dedication of land, or to oversize his facilities for use of others outside of the project without fair compensation or reimbursement.
Section 6-1-1010. (A) Revenues from all development impact fees must be maintained in one or more interest-bearing accounts. Accounting records must be maintained for each category of system improvements and the service area in which the fees are collected. Interest earned on development impact fees must be considered funds of the account on which it is earned, and must be subject to all restrictions placed on the use of impact fees pursuant to the provisions of this article.
(B) Expenditures of development impact fees must be made only for the category of system improvements and within or for the benefit of the service area for which the impact fee was imposed as shown by the capital improvements plan and as authorized in this article. Impact fees may not be used for:
(1) a purpose other than system improvement costs to create additional improvements to serve new growth;
(2) a category of system improvements other than that for which they were collected; or
(3) the benefit of service areas other than the area for which they were imposed.
Section 6-1-1020. (A) An impact fee must be refunded to the owner of record of property on which a development impact fee has been paid if:
(1) the impact fees have not been expended within three years of the date they were scheduled to be expended on a first-in, first-out basis; or
(2) a building permit or permit for installation of a manufactured home is denied.
(B) When the right to a refund exists, the governmental entity shall send a refund to the owner of record within ninety days after it is determined by the entity that a refund is due.
(C) A refund must include the pro rata portion of interest earned while on deposit in the impact fee account.
(D) A person entitled to a refund has standing to sue for a refund pursuant to this article if there has not been a timely payment of a refund pursuant to subsection (B) of this section.
Section 6-1-1030. (A) A governmental entity which adopts a development impact fee ordinance shall provide for administrative appeals by the developer or fee payor.
(B) A fee payor may pay a development impact fee under protest. A fee payor making the payment is not estopped from exercising the right of appeal provided in this article, nor is the fee payor estopped
(C) A governmental entity which adopts a development impact fee ordinance shall provide for mediation by a qualified independent party, upon voluntary agreement by both the fee payor and the governmental entity, to address a disagreement related to the impact fee for proposed development. Participation in mediation does not preclude the fee payor from pursuing other remedies provided for in this section or otherwise available by law.
Section 6-1-1040. A governmental entity may provide in a development impact fee ordinance the method for collection of development impact fees including, but not limited to:
(1) additions to the fee for reasonable interest and penalties for nonpayment or late payment;
(2) withholding of the certificate of occupancy, or building permit if no certificate of occupancy is required, until the development impact fee is paid;
(3) withholding of utility services until the development impact fee is paid; and
(4) imposing liens for failure to pay timely a development impact fee.
Section 6-1-1050. A fee payor and developer may enter into an agreement with a governmental entity, including an agreement entered into pursuant to the South Carolina Local Government Development Agreement Act, providing for payments instead of impact fees for facilities or services. That agreement may provide for the construction or installation of system improvements by the fee payor or developer and for credits or reimbursements for costs incurred by a fee payor or developer including interproject transfers of credits or reimbursement for project improvements which are used or shared by more than one development project. An impact fee may not be imposed on a fee payor or developer who has entered into an agreement as described in this section.
Section 6-1-1060. (A) The provisions of this article do not repeal existing laws authorizing a governmental entity to impose fees or require contributions or property dedications for capital improvements. A development impact fee adopted in accordance with existing laws before the enactment of this article is not affected until termination of
(B) Notwithstanding another provision of this article, property for which a valid building permit or certificate of occupancy has been issued or construction has commenced before the effective date of a development impact fee ordinance is not subject to additional development impact fees.
Section 6-1-1070. (A) If the proposed system improvements include the improvement of public facilities under the jurisdiction of another unit of government including, but not limited to, a special purpose district that does not provide water and waste water utilities, a school district, and a public service district, an agreement between the governmental entity and other unit of government must specify the reasonable share of funding by each unit. The governmental entity authorized to impose impact fees may not assume more than its reasonable share of funding joint improvements, nor may another unit of government which is not authorized to impose impact fees do so unless the expenditure is pursuant to an agreement under Section 6-1-1050 of this section.
(B) A governmental entity may enter into an agreement with another unit of government including, but not limited to, a special purpose district that does not provide water and waste water utilities, a school district, and a public service district, that has the responsibility of providing the service for which an impact fee may be imposed. The determination of the amount of the impact fee for the contracting governmental entity must be made in the same manner and is subject to the same procedures and limitations as provided in this article. The agreement must provide for the collection of the impact fee by the governmental entity and for the expenditure of the impact fee by another unit of government including, but not limited to, a special purpose district that does not provide water and waste water utilities, a school district, and a public services district unless otherwise provided by contract.
Section 6-1-1080. The provisions of this chapter do not apply to a development impact fee for water or wastewater utilities, or both, imposed by a city, county, commissioners of public works, special purpose district, or nonprofit corporation organized pursuant to Chapter 35 or 36 of Title 33, except that in order to impose a development
(1) have a capital improvements plan before imposition of the development impact fee; and
(2) prepare a report to be made public before imposition of the development impact fee, which shall include, but not be limited to, an explanation of the basis, use, calculation, and method of collection of the development impact fee; and
(3) enact the fee in accordance with the requirements of Article 3 of this chapter.
Section 6-1-1090. A county development impact fee ordinance imposed in an area which is annexed by a municipality is not affected by this article until the development impact fee terminates, unless the municipality assumes any liability which is to be paid with the impact fee revenue.
Section 6-1-2000. This article shall not create, grant, or confer any new or additional taxing or revenue raising authority to a political subdivision which was not specifically granted to that entity by a previous act of the General Assembly.
Section 6-1-2010. Compliance with any requirement for public notice or public hearing in this article is considered to be in compliance with any other public notice or public hearing requirement otherwise applicable including, but not limited to, the provisions of Chapter 4, Title 30, and Article 3 of this chapter."
SECTION 2. Chapter 37, Title 5 of the 1976 Code is amended to read:
Section 5-37-10. This chapter may be referred to as 'the 'Municipal Improvement Act of 1973 1999', and any municipal corporation of this State is hereby authorized to exercise the powers and provisions hereof.
Section 5-37-20. As used in this chapter, the following terms shall have the following meanings:
(1) `Assessment' means a charge against the real property of an owner within an improvement district created pursuant to this chapter which is may be based either on assessed value, front footage, area, per parcel basis, the value of improvements to be constructed within the district, or any combination of them, as the basis is determined by the governing body of the municipality. In the event the governing body of a municipality determines that another basis for assessment is appropriate or a more equitable allocation of costs among property
(2) `Improvements' include open or covered malls, parkways, parks and playgrounds, recreation facilities, athletic facilities, pedestrian facilities, parking facilities, parking garages, and underground parking facilities, and facade redevelopment, the widening and dredging of existing channels, canals, and waterways used specifically for recreational or other purposes, the relocation, construction, widening, and paving of streets, roads, and bridges, including demolition of them, underground utilities, all activities authorized by Chapter 1 of Title 31 (State Housing Law), any building or other facilities for public use, any public works eligible for financing under the provisions of Section 6-21-50, and all things incidental to the improvements, including planning, engineering, administration, managing, promotion, marketing, and acquisition of necessary easements and land, and may include facilities for lease or use by a private person, firm, or corporation. However, improvements as defined in this chapter must comply with all applicable state and federal laws and regulations governing these activities. Any such improvements may be designated by the governing body as public works eligible for revenue bond financing pursuant to Section 6-21-50, and such improvements, taken in the aggregate, may be designated by the governing body as a `system' of related projects within the meaning of Section 6-21-40. The governing body of a municipality, after due investigation and study, may determine that improvements located outside the boundaries of an improvement district confer a benefit upon property inside an improvement district or are necessary to make improvements within the improvement district effective for the benefit of property inside the improvement district.
(3) `Improvement district' means any area within the municipality designated by the governing body pursuant to the provisions of this chapter and within which an improvement plan is to be accomplished. No special improvement district may include the grounds of the State House in the City of Columbia.
(4) `Improvement plan' means an overall plan by which the governing body proposes to effect improvements within an improvement district to preserve property values, prevent deterioration of urban areas, and preserve the tax base of the municipality, and includes an overall plan by which the governing body proposes to effect improvements within an improvement district in order to encourage and promote private or public development within the improvement district.
(5) `Governing body' shall mean means the municipal council or other governing body in which the general governing powers of the municipality are vested.
(6) `Owner' is defined as means any person twenty-one years of age, or older, or the proper legal representative for any person younger than twenty-one years of age, and any firm or corporation, who or which owns legal title to a present possessory interest in real estate equal to a life estate or greater (expressly excluding leaseholds, easements, equitable interests, inchoate rights, dower rights, and future interest) and who owns, at the date of the petition or written consent, at least an undivided one-tenth interest in a single tract and whose name appears on the county tax records as an owner of real estate, and any duly organized group whose total interest is at least equal to a one-tenth interest in a single tract.
It is provided, however, that, if any firm or person has a leasehold interest requiring it or him to pay all municipal taxes, such agreement shall not be applicable to charges of the assessment of the district as only the owner has the right to petition on the assessment charge for the improvement district.
Section 5-37-25. A municipality must obtain the consent of the county governing body and any other municipality where the improvement is located to use revenue collected pursuant to this chapter for improvements located outside the municipal boundaries in which the improvement district is located.
Section 5-37-30. The governing body is authorized, within the corporate limits of the city, to acquire, own, construct, establish, install, enlarge, improve, expand, operate, maintain and repair, and sell, lease, and otherwise dispose of any improvement and to finance such acquisition, construction, establishment, installation, enlargement, improvement, expansion, operation, maintenance, and repair, in whole or in part, by the imposition of assessments in accordance with this chapter, by special district bonds, by general obligation bonds of the municipality, by revenue bonds of the municipality, or from general
Section 5-37-40. (A) If the governing body finds that:
(1) improvements would be beneficial within a designated improvement district;
(2) the improvements would preserve or increase property values within the district;
(3) in the absence of the improvements, property values within the area would be likely to depreciate, or that the proposed improvements would be likely to encourage development in the improvement district;
(4) the general welfare and tax base of the city would be maintained or likely improved by creation of an improvement district in the city; and
(5) it would be fair and equitable to finance all or part of the cost of the improvements by an assessment upon the real property within the district, the governing body may establish the area as an improvement district and implement and finance, in whole or in part, an improvement plan in the district in accordance with the provisions of this chapter.
Section 5-37-45. The governing body may include within an improvement district an area within the municipality in which the proposed improvements have been constructed or are under construction at the time of the establishment of the improvement district. Before the commencement of the construction of these improvements, a written agreement with the owner of the area to be improved is entered into by the municipality authorizing the construction of the improvements in anticipation of the inclusion of the area which is improved in the improvement district upon such terms and conditions as the governing body agrees, including the reimbursement, as a cost of constructing improvements under this chapter, of any monies expended for the construction before and subsequent to the establishment of the improvement district. Any agreement providing for the construction of the improvements before the establishment of the improvement district must be authorized by an ordinance of the governing body, notice of which must be given by publication in a newspaper of general circulation within the municipality, appearing at least seven days before the final adoption of the ordinance. Any agreements entered into in accordance with the foregoing conditions before the effective date of this section are ratified and confirmed and the area improved declared eligible for inclusion in the improvement district as proposed in the agreement.
Section 5-37-50. The governing body shall, by resolution duly adopted, describe the improvement district and the improvement plan
Section 5-37-60. A resolution providing for an improvement district, when adopted, shall be published once a week for two successive weeks in a newspaper of general circulation within the incorporated municipality and the final publication shall be at least ten days prior to the date of the scheduled public hearing. At the public hearing and at any adjournment thereof, all interested persons may be heard either in person or by attorney.
Section 5-37-70. The governing body may provide by the resolution for the payment of the cost of the improvements and facilities to be constructed within the improvement district by assessments on the property therein as defined in Section 5-37-20, or by the issuance of special district bonds, or by general obligation bonds of the municipality, or from general municipal revenues from any source not restricted from such use by law, or from any combination of such financing sources as may be provided in the improvement plan.
Section 5-37-80. The financing of improvements by assessments, bonds, or other revenues, and the proportions thereof, shall be in the discretion of the governing body; and the rates of assessments upon property owners within the improvement district need not be uniform but may vary in proportion to improvements made immediately adjacent to or abutting upon the property of each owner therein, as well as other bases as provided in Section 5-37-20.
Section 5-37-90. The improvements as defined in Section 5-37-20 are to be or become the property of the municipality, State, or other public entity and may at any time be removed, altered, changed, or added to, as the governing body may in its discretion determine;
Section 5-37-100. Not sooner than ten days nor more than one hundred twenty days following the conclusion of the public hearing provided in Section 5-37-50, the governing body may, by ordinance, provide for the creation of the improvement district as originally proposed or with such changes and modifications therein as the governing body may determine, and provide for the financing thereof by assessment, bonds, or other revenues as herein provided. However, owner-occupied residential property which is taxed under Section 12-43-220(c) must not be included within an improvement district unless the owner gives the governing body written permission to include the property within the improvement district. Such ordinance shall not become effective until at least seven days after it has been published in a newspaper of general circulation in the municipality. Such ordinance may incorporate by reference plats and engineering reports and other data on file in the offices of the municipality; provided, that the place of filing and reasonable hours for inspection are made available to all interested persons.
Section 5-37-110. In the event all or any part of improvements and facilities within the district are to be financed by assessments on property therein, the governing body shall prepare an assessment roll in which there shall be entered the names of the persons whose properties are to be assessed and the amount assessed against their respective properties with a brief description of the lots or parcels of land assessed. Immediately after such assessment roll has been completed the governing body shall cause one copy thereof to be deposited in the offices of the municipality for inspection by interested parties, and shall cause to be published at least once in a newspaper of general circulation within the municipality a notice of completion of the assessment roll setting forth a description in general terms of the improvements and providing at least ten days' notice of the time fixed for hearing of objections in respect to such assessments. The time for hearing such objections shall be at least thirty days, and hearings may be conducted by one or more members of the governing body of the
Section 5-37-120. As soon as practicable after the completion of the assessment roll and prior to the publication of the notice provided in Section 5-37-110, the governing body shall mail by registered or certified mail, return receipt requested, to the owner or owners of each lot or parcel of land against which an assessment is to be levied, at the address appearing on the records of the city or county treasurer, a notice stating the nature of the improvement, the total proposed cost thereof, the amount to be assessed against the particular property and the basis upon which the assessment is made, together with the terms and conditions upon which the assessment may be paid. The notice shall contain a brief description of the particular property involved, together with a statement that the amount assessed shall constitute a lien against the property superior to all other liens except property taxes. The notice shall also state the time and place fixed for the hearing of objections in respect to the assessment. Any property owner who fails to file with the municipal council a written objection to the assessment against his property within the time provided for hearing such objections shall be deemed to have consented to such assessment, and the published and written notices prescribed in this chapter shall so state. If all of the owners of property upon which an assessment is to be levied consent in writing to the imposition of such assessment, the provisions of this section shall be deemed satisfied.
Section 5-37-130. The governing body shall hear the objections as provided herein of all persons who have filed written notice of objection within the time prescribed and who may appear and make proof in relation thereto either in person or by their attorney. The governing body, at the sessions held to make final decisions on objections, may thereupon make such corrections in the assessment roll as it may deem proper and confirm the same, or set it aside and provide for a new assessment. Whenever the governing body shall confirm an assessment, either as originally prepared or as thereafter corrected, a copy thereof certified by the clerk of the municipality shall be filed in the office of the clerk of court of the county in which the municipality is situate, and from the time of such filing the assessment impressed in the assessment roll shall constitute and be a lien on the real property against which it is assessed superior to all other liens and encumbrances, except the lien for property taxes, and shall be annually assessed and collected with the property taxes thereon.
Section 5-37-140. Upon the confirmation of an assessment, if any, the governing body shall mail a written notice to all persons who have filed written objections as hereinabove provided of the amount of the assessment finally confirmed. Such property owner may appeal such assessment only if he shall, within twenty days after the mailing of the notice to him confirming the assessment, give written notice to the governing body of his intent to appeal his assessment to the court of common pleas of the county in which the property is situate; but no such appeal shall delay or stay the construction of improvements or affect the validity of the assessments confirmed and not appealed. Appeals shall be heard and determined on the record, in the manner of appeals from administrative bodies in this State.
Section 5-37-150. Nothing contained herein shall be construed to limit or restrict the powers of any incorporated municipality, but the authorizations herein contained shall be in addition to any such powers.
Section 5-37-160. Any written petition or consent signed by a property owner prior to July 18, 1974, requesting or consenting to an assessment in an improvement district shall be effective and binding upon said property and property owner and all acts of any municipality taken under any other law shall be effective and binding upon all property owners in an improvement district.
Section 5-37-170. No street in the State state highway system shall be included in a mall development without prior written approval of the South Carolina Highway Commission Department of Transportation.
Section 5-37-180. No street which is located in front of the county courthouse and adjacent thereto shall be included in the mall development without prior written approval of the governing body having jurisdiction over such public property. Likewise, no street which shall in effect block the entrance to the courthouse square shall be included in the mall complex without prior written approval of same governing body."
SECTION 3. Section 33-45-30 of the 1976 Code is amended to read:
"Section 33-45-30. The members of a limited liability company organized pursuant to Chapter 43 or Chapter 44 of this title or five Five or more persons, residents of this State, may associate themselves as a cooperative association, society, company, union, or exchange for the purpose of conducting within this State any agricultural, dairy, mercantile, mining, mechanical, or manufacturing business on the cooperative plan."
SECTION 4. This act takes effect upon approval by the Governor, except that the provisions contained in SECTION 2, which provide that owner-occupied residential property which is taxed under Section 12-43-220(c) must not be included within an improvement district, unless the owner gives the governing body written permission to include the property within the improvement district apply only to improvement districts created after the effective date of this act. /
Amend title to conform.
/s/ Glenn F. McConnell /s/ J. Roland Smith /s/ Holly Cork /s/ Richard M. "Rick" Quinn, Jr. /s/ Luke A. Rankin /s/ Tracy R. Edge On Part of the Senate. On Part of the House.
, and a message was sent to the House accordingly.
Columbia, S.C., June 23, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that it has requested and been granted Free Conference Powers and appointed Reps. R. Smith, Edge and Quinn of the Committee of Free Conference on the part of the House on:
H. 3641 (Word version) -- Reps. Harrison, Seithel, Altman, Wilkins and Edge: A BILL TO AMEND CHAPTER 1, TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LOCAL GOVERNMENT, BY ADDING ARTICLE 9 SO AS TO PROVIDE FOR THE IMPOSITION OF A DEVELOPMENT IMPACT FEE BY A COUNTY OR MUNICIPALITY BY ORDINANCE; TO PROVIDE FOR AN ADVISORY COMMITTEE FOR RECOMMENDING, AND PROCEDURES FOR ADOPTING, LAND USE ASSUMPTIONS, A CAPITAL IMPROVEMENTS PLAN, AND IMPACT FEES; TO PROVIDE FOR COMPUTATION OF THE PROPORTIONATE SHARE OF COSTS OF NEW PUBLIC FACILITIES NEEDED TO SERVE NEW GROWTH AND DEVELOPMENT; AND TO LIMIT THE USES OF THE REVENUE COLLECTED FROM A DEVELOPMENT IMPACT FEE TO APPLICATION TOWARD THE INCREASED COST OF SERVING NEW GROWTH AND DEVELOPMENT.
Received as information.
Columbia, S.C., June 23, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that it has adopted the report of the Committee of Free Conference on:
H. 3641 (Word version) -- Reps. Harrison, Seithel, Altman, Wilkins and Edge: A BILL TO AMEND CHAPTER 1, TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LOCAL GOVERNMENT, BY ADDING ARTICLE 9 SO AS TO PROVIDE FOR THE IMPOSITION OF A DEVELOPMENT IMPACT FEE BY A COUNTY OR MUNICIPALITY BY ORDINANCE; TO PROVIDE FOR AN ADVISORY COMMITTEE FOR RECOMMENDING, AND PROCEDURES FOR ADOPTING, LAND USE ASSUMPTIONS, A CAPITAL IMPROVEMENTS PLAN, AND IMPACT FEES; TO PROVIDE FOR COMPUTATION OF THE PROPORTIONATE SHARE OF COSTS OF NEW PUBLIC FACILITIES NEEDED TO SERVE NEW GROWTH AND DEVELOPMENT; AND TO LIMIT THE USES OF THE REVENUE COLLECTED FROM A DEVELOPMENT IMPACT FEE TO APPLICATION TOWARD THE INCREASED COST OF SERVING NEW GROWTH AND DEVELOPMENT.
Very respectfully,
Speaker of the House
Received as information.
Columbia, S.C., June 23, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that the Report of the Committee of Free Conference having been adopted by both Houses, and this Bill having been read three times in each House, it was ordered that the title thereof be changed to that of an Act, and that it be enrolled for Ratification:
H. 3641 (Word version) -- Reps. Harrison, Seithel, Altman, Wilkins and Edge: A BILL TO AMEND CHAPTER 1, TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LOCAL GOVERNMENT, BY ADDING ARTICLE 9 SO AS TO PROVIDE
Received as information.
H. 3963 (Word version) -- Rep. Quinn: A BILL TO AMEND SECTION 12-43-217, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SCHEDULE OF COUNTYWIDE REASSESSMENT AND EQUALIZATION PROGRAM, SO AS TO PROVIDE FOR A DELAY IN THE IMPLEMENTATION OF THE REVISED VALUES RESULTING FROM SUCH A PROGRAM IN JURISDICTIONS WHICH CROSS COUNTY LINES EXCEPT WHERE ALL COUNTIES IN WHICH THE JURISDICTIONS LOCATED SIMULTANEOUSLY IMPLEMENT SUCH A PROGRAM.
On motion of Senator COURSON, with unanimous consent, the Report of the Committee of Conference was taken up for immediate consideration.
Senator COURSON spoke on the report.
On motion of Senator COURSON, with unanimous consent, Free Conference Powers were granted.
Whereupon, the PRESIDENT Pro Tempore appointed Senators COURSON, ALEXANDER and RANKIN to the Committee of Free
On motion of Senator COURSON, the Report of the Committee of Free Conference to H. 3963 was adopted as follows:
The COMMITTEE OF FREE CONFERENCE, to whom was referred:
H. 3963 (Word version) -- Rep. Quinn: A BILL TO AMEND SECTION 12-43-217, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SCHEDULE OF COUNTYWIDE REASSESSMENT AND EQUALIZATION PROGRAM, SO AS TO PROVIDE FOR A DELAY IN THE IMPLEMENTATION OF THE REVISED VALUES RESULTING FROM SUCH A PROGRAM IN JURISDICTIONS WHICH CROSS COUNTY LINES EXCEPT WHERE ALL COUNTIES IN WHICH THE JURISDICTIONS LOCATED SIMULTANEOUSLY IMPLEMENT SUCH A PROGRAM.
Beg leave to report that they have duly and carefully considered the same and recommend:
That the same do pass with the following amendments: (Reference is to Printer's Version.)
Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:
/ SECTION 1. Notwithstanding any other provision of law, if a property tax equalization and reassessment is occurring for a particular year in taxing districts located in one county of Richland-Lexington School District 5 but not in taxing districts of the other county, then the school board of trustees shall set an equivalent millage to be used to compute the ad valorem property taxes in the taxing districts of reassessment until a reassessment occurs in the taxing districts of the other county. The equivalent millage to be set by the school board of trustees shall be determined by methodology established by the respective county auditors which shall be consistent with the methodology used to calculate equivalent millage pursuant to Section 12-37-251 of the 1976 Code.
The purpose of this section is to equalize the tax burdens within this school district. In computing equivalent millage for purposes of the Trust Fund for Tax Relief regarding Richland-Lexington School
Amend title to conform.
/s/ John Courson /s/ Richard Quinn /s/ Thomas Alexander /s/ Harry Limehouse /s/ Luke Rankin /s/ Alfred Robinson On Part of the Senate. On Part of the House.
, and a message was sent to the House accordingly.
Columbia, S.C., June 23, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that it has requested and been granted Free Conference Powers and has appointed Reps. Quinn, Robinson and Limehouse of the Committee of Free Conference on the part of the House on:
H. 3963 (Word version) -- Rep. Quinn: A BILL TO AMEND SECTION 12-43-217, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SCHEDULE OF COUNTYWIDE REASSESSMENT AND EQUALIZATION PROGRAM, SO AS TO PROVIDE FOR A DELAY IN THE IMPLEMENTATION OF THE REVISED VALUES RESULTING FROM SUCH A PROGRAM IN JURISDICTIONS WHICH CROSS COUNTY LINES EXCEPT WHERE ALL COUNTIES IN WHICH THE JURISDICTIONS LOCATED SIMULTANEOUSLY IMPLEMENT SUCH A PROGRAM.
Very respectfully,
Speaker of the House
Received as information.
Columbia, S.C., June 23, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that it has adopted the Report of the Committee of Free Conference on:
H. 3963 (Word version) -- Rep. Quinn: A BILL TO AMEND SECTION 12-43-217, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SCHEDULE OF COUNTYWIDE REASSESSMENT AND EQUALIZATION PROGRAM, SO AS TO PROVIDE FOR A
Received as information.
Columbia, S.C., June 23, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that the Report of the Committee of Free Conference having been adopted by both Houses, and this Bill having been read three times in each House, it was ordered that the title thereof be changed to that of an Act, and that it be enrolled for Ratification:
H. 3963 (Word version) -- Rep. Quinn: A BILL TO AMEND SECTION 12-43-217, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SCHEDULE OF COUNTYWIDE REASSESSMENT AND EQUALIZATION PROGRAM, SO AS TO PROVIDE FOR A DELAY IN THE IMPLEMENTATION OF THE REVISED VALUES RESULTING FROM SUCH A PROGRAM IN JURISDICTIONS WHICH CROSS COUNTY LINES EXCEPT WHERE ALL COUNTIES IN WHICH THE JURISDICTIONS LOCATED SIMULTANEOUSLY IMPLEMENT SUCH A PROGRAM.
Very respectfully,
Speaker of the House
Received as information.
H. 4000 (Word version) -- Reps. Hamilton, Wilkins, Townsend, Altman, Bales, Battle, Barrett, Beck, G. Brown, H. Brown, Canty, Carnell, Clyburn, Cooper, Cotty, Dantzler, Davenport, Easterday, Emory, Gilham, Gourdine, Harrell, Hayes, J. Hines, M. Hines, Hinson, Jennings, Keegan, Kelley, Kirsh, Klauber, Law, Leach, Lee, Limehouse, Littlejohn, Maddox, Martin, Mason, McCraw, McGee, Miller, Parks, Phillips, Rodgers, Sandifer, D. Smith, J. Smith, R. Smith, Stille, Stuart, Taylor, Vaughn, Young-Brickell and Simrill: A BILL TO DIRECT THE STATE BOARD OF EDUCATION THROUGH THE
On motion of Senator BRYAN, with unanimous consent, the Report of the Committee of Conference was taken up for immediate consideration.
Senator BRYAN spoke on the report.
On motion of Senator BRYAN, the Report of the Committee of Conference to H. 4000 was adopted as follows:
The COMMITTEE OF CONFERENCE, to whom was referred:
H. 4000 (Word version) -- Reps. Hamilton, Wilkins, Townsend, Altman, Bales, Battle, Barrett, Beck, G. Brown, H. Brown, Canty, Carnell, Clyburn, Cooper, Cotty, Dantzler, Davenport, Easterday, Emory, Gilham, Gourdine, Harrell, Hayes, J. Hines, M. Hines, Hinson, Jennings, Keegan, Kelley, Kirsh, Klauber, Law, Leach, Lee, Limehouse, Littlejohn, Maddox, Martin, Mason, McCraw, McGee, Miller, Parks, Phillips, Rodgers, Sandifer, D. Smith, J. Smith, R. Smith, Stille, Stuart, Taylor, Vaughn, Young-Brickell and Simrill: A BILL TO DIRECT THE STATE BOARD OF EDUCATION THROUGH THE DEPARTMENT OF EDUCATION TO ESTABLISH A TASK FORCE TO MAKE RECOMMENDATIONS FOR PURSUING STATEWIDE WAIVERS FOR THE SIX FEDERAL EDUCATION PROGRAMS AND ESTABLISHING A STATE EDUCATION FLEXIBLITY PROGRAM AND REPORT NO LATER THAN DECEMBER 1, 1999, TO THE SENATE EDUCATION COMMITTEE AND THE HOUSE EDUCATION AND PUBLIC WORKS COMMITTEE.
Beg leave to report that they have duly and carefully considered the same and recommend:
That the same do pass with the following amendments: (Reference is to Printer's Version 5/20/99--S.)
Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:
/ SECTION 1. (A) The State Board of Education through the Department of Education is directed to establish a task force to review and make recommendations for pursuing statewide waivers for the six applicable federal education programs and establishing a state education flexibility program to include the possible waiving of specified statutory and regulatory educational requirements applicable to local school districts and schools to help improve student academic performance.
(B) The recommendations shall include, but not be limited to:
(1) the particular waivers to be sought from federal regulations and the reasons why;
(2) state statutory requirements relating to education that the General Assembly should consider including in the flexibility program and the reasons why;
(3) the regulatory requirements relating to education that the board will consider waiving;
(4) a description of how the proposed educational flexibility plan is consistent with and will assist in implementing the intent and objectives of Act 135 of 1993, the School to Work Transition Act of 1994, and the Education Accountability Act of 1998;
(5) the process to be used to evaluate applications from local school districts or schools requesting waivers of state statutory or regulatory education requirements; and
(6) the process to be used to evaluate the performance of students in the schools and local school districts affected by the waivers.
(C) In undertaking this review, the following areas may not be considered for the education flexibility program:
(1) maintenance of effort;
(2) comparability of services;
(3) parental participation and involvement;
(4) the distribution of funds to local school districts;
(5) school attendance areas; and
(6) applicable constitutional requirements.
(D) In establishing the membership of the task force, the State Board and Department of Education shall appoint members of the education community directly involved in the areas covered by the federal programs and under consideration for waivers as well as school and district administrators. The members should come from all regions of the State and be representative of the types of school districts in the
SECTION 2. This act takes effect upon approval by the Governor. /
Amend title to conform.
/s/ James Bryan /s/ Glenn Hamilton /s/ Maggie Glover /s/ Jesse Hines /s/ William Mescher /s/ Shirley Hinson On Part of the Senate. On Part of the House.
, and a message was sent to the House accordingly.
Columbia, S.C., June 23, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that it has adopted the Report of the Committee of Conference on:
H. 4000 (Word version) -- Reps. Hamilton, Wilkins, Townsend, Altman, Bales, Battle, Barrett, Beck, G. Brown, H. Brown, Canty, Carnell, Clyburn, Cooper, Cotty, Dantzler, Davenport, Easterday, Emory, Gilham, Gourdine, Harrell, Hayes, J. Hines, M. Hines, Hinson, Jennings, Keegan, Kelley, Kirsh, Klauber, Law, Leach, Lee, Limehouse, Littlejohn, Maddox, Martin, Mason, McCraw, McGee, Miller, Parks, Phillips, Rodgers, Sandifer, D. Smith, J. Smith, R. Smith, Stille, Stuart, Taylor, Vaughn, Young-Brickell and Simrill: A BILL TO DIRECT THE STATE BOARD OF EDUCATION THROUGH THE DEPARTMENT OF EDUCATION TO ESTABLISH A TASK FORCE TO MAKE RECOMMENDATIONS FOR PURSUING STATEWIDE WAIVERS FOR THE SIX FEDERAL EDUCATION PROGRAMS AND ESTABLISHING A STATE EDUCATION FLEXIBLITY PROGRAM AND REPORT NO LATER THAN DECEMBER 1, 1999, TO THE SENATE EDUCATION COMMITTEE AND THE HOUSE EDUCATION AND PUBLIC WORKS COMMITTEE.
Very respectfully,
Speaker of the House
Received as information.
Columbia, S.C., June 23, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that the Report of the Committee of Conference having been adopted by both Houses, and this Bill having been read three times in each House, it was ordered that the title thereof be changed to that of an Act, and that it be enrolled for Ratification:
H. 4000 (Word version) -- Reps. Hamilton, Wilkins, Townsend, Altman, Bales, Battle, Barrett, Beck, G. Brown, H. Brown, Canty, Carnell, Clyburn, Cooper, Cotty, Dantzler, Davenport, Easterday, Emory, Gilham, Gourdine, Harrell, Hayes, J. Hines, M. Hines, Hinson, Jennings, Keegan, Kelley, Kirsh, Klauber, Law, Leach, Lee, Limehouse, Littlejohn, Maddox, Martin, Mason, McCraw, McGee, Miller, Parks, Phillips, Rodgers, Sandifer, D. Smith, J. Smith, R. Smith, Stille, Stuart, Taylor, Vaughn, Young-Brickell and Simrill: A BILL TO DIRECT THE STATE BOARD OF EDUCATION THROUGH THE DEPARTMENT OF EDUCATION TO ESTABLISH A TASK FORCE TO MAKE RECOMMENDATIONS FOR PURSUING STATEWIDE WAIVERS FOR THE SIX FEDERAL EDUCATION PROGRAMS AND ESTABLISHING A STATE EDUCATION FLEXIBLITY PROGRAM AND REPORT NO LATER THAN DECEMBER 1, 1999, TO THE SENATE EDUCATION COMMITTEE AND THE HOUSE EDUCATION AND PUBLIC WORKS COMMITTEE.
Very respectfully,
Speaker of the House
Received as information.
S. 311 (Word version) -- Senator Martin: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-52-95 SO AS TO PROVIDE THAT THE SCHOOL TO WORK ADVISORY COUNCIL SHALL REPORT TO THE HOUSE EDUCATION AND PUBLIC WORKS COMMITTEE AND THE SENATE EDUCATION COMMITTEE BY JANUARY 1, 2000, AS TO THE PROGRESS MADE IN ESTABLISHING THE SCHOOL-TO-WORK SYSTEM, DIFFICULTIES ENCOUNTERED, AND ANY ACTIONS REQUIRED BY THE GENERAL ASSEMBLY TO ENSURE SUCCESS OF THE SYSTEM; TO PROVIDE THAT NO STATE FUNDS SHALL BE EXPENDED TO SUPPORT THE CONTINUATION OF THE ADVISORY COUNCIL,
The House returned the Bill with amendments.
On motion of Senator SETZLER, the Senate concurred in the House amendments and a message was sent to the House accordingly. Ordered that the title be changed to that of an Act and the Act enrolled for Ratification.
S. 908 (Word version) -- Senator Courson: A CONCURRENT RESOLUTION CONGRATULATING MASHBURN CONSTRUCTION COMPANY ON ITS GROWTH FOR ALMOST A QUARTER OF A CENTURY INTO A THRIVING BUSINESS THAT NOW REQUIRES EXPANDED FACILITIES, AND EXPRESSING GRATITUDE FOR THE COMMUNITY LEADERSHIP AND EXEMPLARY CORPORATE CITIZENSHIP THAT MASHBURN'S OWNERS AND EMPLOYEES HAVE SHOWN.
Returned with concurrence.
Received as information.
THE SENATE PROCEEDED TO A CALL OF THE UNCONTESTED LOCAL CALENDAR.
H. 4204 (Word version) -- Rep. D. Smith: A BILL TO AMEND ACT 318 OF 1965, AS AMENDED, RELATING TO THE CHEROKEE SPRINGS FIRE DISTRICT IN SPARTANBURG COUNTY, SO AS TO AUTHORIZE THE BOARD OF FIRE CONTROL TO EMPLOY FULL-TIME FIREMEN AND A FIRE CHIEF.
(By prior motion of Senator COURTNEY)
THE SENATE PROCEEDED TO THE MOTION PERIOD.
On motion of Senator MOORE, the Senate agreed to dispense with the Motion Period.
Senator MOORE moved that a Call of the Senate be made. The following Senators answered the Call:
Alexander Anderson Bauer Branton Bryan Cork Courson Courtney Drummond Elliott Ford Giese Glover Gregory Grooms Hayes Holland Hutto Jackson Land Leatherman Leventis Martin Matthews McConnell McGill Moore O'Dell Passailaigue Patterson Peeler Rankin Ravenel Reese Russell Ryberg Saleeby Setzler Short Smith, J. Verne Thomas Waldrep
A quorum being present, the Senate resumed.
On motion of Senator MOORE, with unanimous consent, the Senate agreed to revert to the Morning Hour.
H. 3002 (Word version) -- Reps. Wilkins, Hawkins, Altman, J. Brown, Loftis, Leach, Kelley, Harvin, Walker, D. Smith, Campsen, Stille, Davenport, Rice, Barrett, Cotty, Lanford, Wilder, Sharpe, Delleney, Littlejohn, Tripp, Witherspoon, Harris, Carnell, Kirsh, Vaughn, Webb, McKay, Riser, Sandifer, Cato, Simrill, Allison, Harrison, Barfield, McGee, Meacham, Hamilton, Koon, Fleming, Martin, Mason, Gilham, Emory, McCraw, Edge, Robinson and W. McLeod: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-19-170, ENACTING THE GAMBLING CRUISE PROHIBITION
On motion of Senator MOORE, with unanimous consent, the Report of the Committee of Conference was taken up for immediate consideration.
Senator MOORE explained the report.
At 12:12 P.M., with Senator MOORE retaining the floor, on motion of Senator PASSAILAIGUE, with unanimous consent, the Senate receded from business not to exceed five minutes.
At 12:17 P.M., the Senate resumed.
Senator MOORE continued explaining the report.
Senator RYBERG argued contra to the adoption of the report.
Senator MOORE moved that Free Conference Powers be granted.
The "ayes" and "nays" were demanded and taken, resulting as follows:
AYES
Alexander Anderson Bauer Branton Bryan Cork Courson Courtney Drummond Elliott Ford Giese Glover Gregory Grooms Hayes Holland Hutto Jackson Land Leatherman Leventis Martin Matthews McConnell McGill Mescher * Moore O'Dell Passailaigue Patterson Peeler Rankin
Ravenel Reese Russell Saleeby Setzler Short Smith, J. Verne Thomas Waldrep Washington * Wilson *
Ryberg
*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.
Free Conference Powers were granted.
Whereupon, the PRESIDENT Pro Tempore appointed Senators MOORE, PASSAILAIGUE and HAYES of the Committee of Free Conference on the part of the Senate and a message was sent to the House accordingly.
Senator MOORE moved that the Report of the Committee of Free Conference be adopted.
The "ayes" and "nays" were demanded and taken, resulting as follows:
AYES
Alexander Anderson Bauer Branton Cork Courson Courtney Elliott Ford Giese Glover Gregory Grooms Hayes Holland Hutto Jackson Land Leatherman Leventis Martin Matthews McConnell McGill Mescher * Moore O'Dell Passailaigue Patterson Peeler
Rankin Ravenel Reese Russell Saleeby Setzler Short Smith, J. Verne Thomas Waldrep Washington * Wilson *
Bryan Drummond Ryberg
*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.
The Report of the Committee of Free Conference was adopted as follows:
The COMMITTEE OF FREE CONFERENCE, to whom was referred:
H. 3002 (Word version) -- Reps. Wilkins, Hawkins, Altman, J. Brown, Loftis, Leach, Kelley, Harvin, Walker, D. Smith, Campsen, Stille, Davenport, Rice, Barrett, Cotty, Lanford, Wilder, Sharpe, Delleney, Littlejohn, Tripp, Witherspoon, Harris, Carnell, Kirsh, Vaughn, Webb, McKay, Riser, Sandifer, Cato, Simrill, Allison, Harrison, Barfield, McGee, Meacham, Hamilton, Koon, Fleming, Martin, Mason, Gilham, Emory, McCraw, Edge, Robinson and W. McLeod: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-19-170, ENACTING THE GAMBLING CRUISE PROHIBITION ACT, SO AS TO PROHIBIT GAMBLING ON A CRAFT THAT EMBARKS AND DISEMBARKS FROM ANY POINT IN THIS STATE AND TO MAKE THIS PROHIBITION APPLY WHETHER OR NOT THE GAMBLING ACTIVITIES ARE CONDUCTED WITHIN THE WATERS OF THIS STATE, AND TO PROVIDE A PENALTY.
Beg leave to report that they have duly and carefully considered the same and recommend:
That the same do pass with the following amendments: (Reference is to Printer's Version 05/18/99--H.)
Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:
SECTION 1. Section 12-21-2710 of the 1976 Code, as amended by Act 155 of 1997, is further amended to read:
"Section 12-21-2710. It is unlawful for any person to keep on his premises or operate or permit to be kept on his premises or operated within this State any vending or slot machine, or any video game machine with a free play feature operated by a slot in which is deposited a coin or thing of value, or other device operated by a slot in which is deposited a coin or thing of value for the play of poker, blackjack, keno, lotto, bingo, or craps, or any machine or device licensed pursuant to Section 12-21-2720 and used for gambling or any punch board, pull board, or other device pertaining to games of chance of whatever name or kind, including those machines, boards, or other devices that display different pictures, words, or symbols, at different plays or different numbers, whether in words or figures or, which deposit tokens or coins at regular intervals or in varying numbers to the player or in the machine, but the provisions of this section do not extend to coin-operated nonpayout pin tables, in-line pin games, and video games with free play feature which meet the technical requirements provided for in Section 12-21-2782 and Section 12-21-2783, or to automatic weighing, measuring, musical, and vending machines which are constructed as to give a certain uniform and fair return in value for each coin deposited and in which there is no element of chance.
Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned for a period of not more than one year, or both."
SECTION 2. Section 12-21-2712 of the 1976 Code is amended to read:
"Section 12-21-2712. Any vending or slot machine, punch board, or other device pertaining to games of chance prohibited by Section 12-21-2710 must be seized by any officer of the law law enforcement officer and at once taken before any magistrate of the county in which the machine, board, or device is seized who shall immediately examine it, and if he is satisfied that it is in violation of Section 12-21-2710 or
SECTION 3. A. Section 12-21-2720(A)(3) of the 1976 Code, as last amended by Section 148, Act 181 of 1993, is further amended to read:
"(3) a machine of the nonpayout type, or in-line pin game, or video game with free play feature operated by a slot in which is deposited a coin or thing of value except machines of the nonpayout pin table type with levers or `flippers' operated by the player by which the course of the balls may be altered or changed."
B. Section 12-21-2720(C) of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:
"(C) The owner or operator of any coin-operated device which is exempt from Section 16-19-60 and is subject to licensing under Section 12-21-2720(A)(3) and which has multi-player stations, shall purchase a separate license for each such station and any such multi-player station counts as a machine when determining the number of machines authorized for licensure under Section 12-21-2804(A)."
C. Section 12-21-2720 of the 1976 Code, as last amended by Act 155 of 1997, is further amended by deleting subsections (E) and (F), which read:
"(E) The department shall not issue a license for the operation of a video game with a free play feature which is located or intended to be located on a watercraft or vessel plying the territorial waters of this State.
(F) Four hundred dollars of the four thousand dollar license fee imposed in subsection (A) may be retained by the department and expended in budgeted operations for the implementation and ongoing operation of the monitoring system required by law or in other programs and services as the director may determine necessary and appropriate."
SECTION 4. Section 12-21-2726 of the 1976 Code, as last amended by Act 164 of 1993, is further amended to read:
"Section 12-21-2726. Every person who maintains for use or permits the use of, on a place or premises occupied by him, a machine subject to the license imposed by this article by way of proof of licensing must have a current license displayed conspicuously on the front of the machine. Except for the provisions of Sections 12-21-2774 and 12-21-2776, each machine licensed pursuant to this section must be operated in a stand-alone fashion and may not be linked in any way to another coin-operated machine or device."
SECTION 5. Section 16-19-40 of the 1976 Code is amended to read:
"Section 16-19-40. If any person shall play at any tavern, inn, store for the retailing of spirituous liquors or in any house used as a place of gaming, barn, kitchen, stable or other outhouse, street, highway, open wood, race field or open place at (a) any game with cards or dice, (b) any gaming table, commonly called A, B, C, or E, O, or any gaming table known or distinguished by any other letters or by any figures, (c) any roley-poley table, (d) rouge et noir, (e) any faro bank or (f) any other table or bank of the same or the like kind under any denomination whatsoever or (g) any machine or device licensed pursuant to Section 12-21-2720 and used for gambling purposes, except the games of billiards, bowls, backgammon, chess, draughts, or whist when there is no betting on any such game of billiards, bowls, backgammon, chess, draughts, or whist or shall bet on the sides or hands of such as do game, upon being convicted thereof, before any magistrate, shall be imprisoned for a period of not over thirty days or shall suffer a fine of fined not over one hundred dollars, and every person so keeping such tavern, inn, retail store, public place, or house used as a place for gaming or such other house shall, upon being convicted thereof, upon indictment, be imprisoned for a period not exceeding twelve months and forfeit a sum not exceeding two thousand dollars, for each and every offense."
SECTION 6. Section 12-54-40 of the 1976 Code, as last amended by Act 155 of 1997, is further amended by deleting subsection (M) which reads:
"(M) A machine owner or distributor, as defined in Article 20, Chapter 21 of this title, who allows or causes a machine to be operated without a metering device, or who wilfully places a machine on location or who wilfully allows or causes a machine to be operated with a metering device that does not accurately record the information required under Article 20, Chapter 21 of this title is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than ten years, without benefit of probation, parole, or suspension of sentence, and in addition may be fined not more than twenty-five thousand dollars."
SECTION 7. Section 16-19-50 of the 1976 Code is amended to read:
"Section 16-19-50. Any person who shall set up, keep, or use any (a) gaming table, commonly called A, B, C, or E, O, or any gaming table known or distinguished by any other letters or by any figures, (b)
SECTION 8. Section 12-21-2703 and 16-19-60 and Article 20, Chapter 21 of Title 12, all of the 1976 Code, are repealed.
SECTION 9. (1) A statewide referendum must be conducted November 2, 1999, to ascertain whether or not video game machine payouts will continue to be allowed in this State. The State Election Commission shall place the exact question contained in item (2) of this subsection on the referendum ballot. The state election laws shall apply to the referendum, mutatis mutandis. The State Board of Canvassers shall publish the results of the referendum and certify them to the Secretary of State, the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the Code Commissioner.
(2) The question put before the qualified electors in the referendum shall read:
"Shall cash payouts for credits earned on video game machines continue to be allowed after June 30, 2000?
no [ ]
Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."
(3) The State Election Commission shall place the following explanation of the referendum question on the ballot:
"A majority 'yes' vote shall mean that cash payouts for credits earned on video game machines shall continue to be allowed, with an increase in the legal payout to $500 per payout and with additional taxes and regulation.
A majority 'no' vote shall mean that cash payouts for credits earned on video game machines shall not be allowed after June 30, 2000."
(4) In addition to all license taxes and fees imposed by the State on video games with a free play feature pursuant to Section 12-21-2720(A)(3) of the 1976 Code imposing such licenses and fees,
SECTION 10. Title 12 of the 1976 Code is amended by adding:
Section 12-22-10. As used in this chapter, unless the context clearly requires otherwise:
(1) 'Director' means the Director of the Department of Revenue.
(2) 'Chief' means the Chief of the South Carolina State Law Enforcement Division.
(3) 'Division' means the South Carolina State Law Enforcement Division.
(4) `Associated equipment' means parts and components that affect win and loss or that communicate, display, or affect the number of credits won, lost, or played.
(5) 'Background investigation' means the investigation conducted in accordance with Article 13 of this chapter.
(6) `Central computer monitoring system' or similar term means the computing system administered by the department for communicating with and retrieving information from machines, and activating and disabling machines.
(7) 'Contraband machine,' or 'contraband device,' means a machine, location controller or its modem, the computer chips of a machine or location controller, or any other part of the machine, location controller or modem not meeting the requirements of this chapter. A 'machine' that does not meet the requirements of this chapter is a 'contraband machine' regardless of whether the machine issues payout tickets redeemable for cash.
(8) `Disable' or `disabling' means the process of executing a command from the central computer monitoring system or the location controller which causes a machine to cease functioning.
(9) `Distributor' means any person who sells, buys and sells, gives, loans, or is the lessee or the lessor of machines. A distributor may also:
(a) service or repair machines in this State;
(b) own machines which are not placed into operation in an establishment without obtaining a machine owner's license;
(c) own machines which are placed into operation in an establishment only if a machine owner's license is obtained; and
(d) operate machines which are placed into operation in an establishment only if a machine operator's license is obtained.
(10) `Establishment' or `location' means premises with machines.
(11) `Gross machine income' means the amount of money that goes into the machine.
(12) `Machine' means a nonpayout electronic machine with a free play feature that, upon insertion of cash or coin, is available to play or simulate the play of games utilizing a video display and microprocessors, in which the player may receive free games or credits that are redeemed for cash except as prohibited by this chapter. Each player station of a multi-player unit is a separate machine.
(13) 'Machine owner' means any person, other than a distributor, who owns one or more machines.
(14) `Machine operator' means any person who owns, operates, or manages an establishment with one or more machines.
(15) `Manufacturer' means any person that manufactures, assembles, or programs machines or controllers for sale or use in this State.
(16) 'Net machine income' means the amount of money that goes into the machine less payouts.
(17) 'Payback' means the theoretical percentage of return to a player.
(18) 'Payout' means the total amount a player is paid at the end of a play period, regardless of the amount the player has deposited in the machine.
(19) `Person' means any individual, partnership, corporation, association, entity, or organization of any type.
(20) `Play period' means the period of time from when money is put into the machine until payout.
(21) 'Player' means a person who participates in the playing of a machine.
(22)(a) `Principal' means:
(i) every person;
(ii) an association;
(iii) all partners of a partnership, limited partnership, or limited liability partnership;
(iv) all members of a limited liability company, or if the company is a manager-managed company, all members and managers;
(v) trust and its beneficiaries;
(vi) corporation, its directors, officers, and stockholders with a ten percent or more direct or beneficial interest or any person or entity that receives more than ten percent of the net income; or
(vii) an employee who has day-to-day operational management responsibilities for the business or entity;
which has or will have a direct or indirect ownership interest in a machine or machines, a manufacturer, a machine owner, distributor, a machine operator or the establishment for which the applicant seeks a new or renewal license.
(b) 'Indirect ownership interest' includes, but is not limited to, a loan or extension of credit or forgiving of a loan of ten thousand dollars or more, made to or for the benefit of an applicant or licensee. `Indirect ownership interest' does not include a loan or extension of credit made by a state or federally chartered financial institution or a restricted or supervised lender licensed under South Carolina law. Multiple loans of less than ten thousand dollars may not be used to evade the requirements of this chapter and such activity is grounds for revocation of any and all licenses issued pursuant to Section 12-22-320 held by the applicant.
(c) If a corporation is a member of a controlled group of corporations, as defined in 26 U.S.C. 1563, or a member of an affiliated group of corporations, as defined in 26 U.S.C 1504, and at least one member of the group of corporations is a publicly-held corporation, then only the corporation which engages in the business or activity required to be licensed pursuant to this chapter is considered a principal for purposes of this chapter, along with its directors, officers, and stockholders as described in subitem (a)(vi).
(d) For purposes of item (c) of this subsection, `publicly held corporation' means a corporation:
(i) whose shares are traded on a national exchange; and
(ii) whose total assets at the end of the corporation's most recent fiscal quarter exceeded one billion dollars.
(23) `Records' means all paper or electronic accounts, bank account records, financial statements, business records, contracts, reports and returns, including tax information and returns, and other information the department or division reasonably considers necessary to administer and enforce the provisions of this chapter.
(23) `Video Game Machine Identification Number' or 'VGMID' means the permanently assigned unique number issued by the department to identify a specific machine from first delivery in this State until destruction or removal from this State.
Section 12-22-20. (A) Unless specifically granted to the division, the department has all powers necessary and proper to execute fully and effectively the provisions of this chapter including, but not limited to, the power:
(1) to require any person to submit any information necessary to effectively administer and enforce the provisions of this chapter;
(2) to prescribe the forms which must be used by any licensee involved in the manufacturing, ownership, distribution or operation of machines or an establishment or other coin-operated devices licensed pursuant to this chapter;
(3) to suspend any license authorized by this chapter without notice or hearing upon a determination that a licensee is willfully violating the provisions of this chapter, prima facie evidence of which is sufficient after written notice by the department has been sent to the licensee regarding a violation of this chapter and the violation has not been cured within a reasonable time as directed by the department in that written communication; any suspension must remain in effect until the department determines that the cause for the suspension has been cured or abated; a license may be revoked upon a determination that the licensee has not made satisfactory progress to implement necessary corrective measures;
(4) to suspend any license authorized by this chapter without notice or hearing upon a determination that the safety or health of patrons or employees is jeopardized by the licensee or the condition of the licensee's facilities; any suspension must remain in effect until the department determines that the cause for the suspension has been abated; a license may be revoked upon a determination that the licensee has not made satisfactory progress toward abating the hazard;
(5) to adopt regulations in accordance with the Administrative Procedures Act; and
(6) to take any other action as may be reasonable or appropriate to enforce this chapter.
(B) Notwithstanding subsection (A), any law enforcement officer has the authority to enforce any criminal provision of this chapter.
Section 12-22-30. Except as provided in Section 12-54-240, any information obtained by the department or division in the administration and enforcement of the provisions of this chapter is
Section 12-22-40. The department has sole and exclusive power to issue all licenses provided for in this chapter. The department has exclusive authority to establish the conditions or restrictions necessary for issuing, suspending, or revoking a license.
Section 12-22-50. The department may issue subpoenas requiring the attendance of witnesses and the production of records, memoranda, papers, and other documents and administer oaths and take testimony thereunder.
Section 12-22-60. All fees, taxes, and penalties imposed in this chapter are a first lien upon any and all property of the person charged therewith.
Section 12-22-70. All records of a licensee must be kept in the manner prescribed by the department. All records shall be retained for at least the period for which taxes may be assessed under Section 12-54-85.
Section 12-22-80. All applicants and their principals shall provide access for the department and division to all of the applicant's financial records pertaining to the financing of the applicant in order to evaluate statements and documentation supplied with the application in connection with background investigations.
Section 12-22-90. (A) The director, the employees of the department, the chief, and the employees of the division, may not directly or indirectly, individually, or as a member of a partnership, or as a shareholder with a one percent or more direct or beneficial interest in a corporation, have a financial or ownership interest in:
(1) a testing laboratory chosen by the department pursuant to this chapter Section 12-22-960;
(2) a machine;
(3) a machine owner;
(4) a machine operator;
(5) a manufacturer;
(6) a distributor; or
(7) an establishment.
(B) The director, the employees of the department, the chief, and the employees of the division may not directly or indirectly receive income from, receive a loan fund from, or be forgiven from repaying any loan from a testing laboratory or any person or business entity issued a license pursuant to Section 12-22-320.
Section 12-22-310. (A) Before a machine or associated equipment is manufactured, distributed, sold, or placed for use in this State, the machine owner, machine operator, manufacturer, distributor, and establishment must be licensed by the department as provided for in this chapter.
(B) Before placement or operation, a machine must be licensed.
(C) Licenses issued as provided for in this chapter are the property of the department and must not be transferred, assigned to another person, or pledged as collateral, except as otherwise provided in this chapter. Any transfer of a business, or a change of ownership, possession, or control of an interest in a business holding a license issued under Section 12-22-320 must be conducted in accordance with Section 12-22-350. Any transfer of a machine, or a change of ownership, possession, or control of a machine licensed under Section 12-22-330 must be conducted in accordance with Section 12-22-350.
Section 12-22-320. (A)(1) Every two years a manufacturer, distributor, machine owner, machine operator, and establishment, engaging in business in this State, shall apply for and obtain from the department a license for the privilege of engaging in the business and shall pay the nonrefundable fee levied at the time of license application. The fees are as follows:
(a) manufacturer, ten thousand dollars;
(b) distributor, ten thousand dollars; and
(c) owner, two thousand dollars.
(2) There is no licensing fee imposed upon:
(a) a person licensed as a machine operator; or
(b) an establishment.
(B)(1) A licensed manufacturer who is also engaged in business as a machine owner, distributor, or machine operator, shall obtain a separate license for each activity for which a license is required.
(2) A licensed machine owner who is also engaged in business as a manufacturer, distributor, or machine operator, shall obtain a separate license for each activity for which a license is required.
(3) A licensed distributor who is also engaged in business as a manufacturer, machine owner, or machine operator, shall obtain a separate license for each activity for which a license is required.
(4) A machine operator may operate more than one establishment under the same machine operator's license but shall obtain a separate
(5) Each licensed establishment shall have a licensed machine operator.
(C) At the time of filing the application for a license, the applicant must pay the fee imposed pursuant to subsection (A).
(D) Biennial licenses issued under this chapter for machine owners, machine operators, distributors, and manufacturers expire according to the county of the licensee's principal place of business. For nonresident licensees, licenses expire according to the county where the licensee's registered agent is located. For establishments, the license expires according to the county where the establishment is located. The expiration dates are the last day of:
(1) February in years which end in an:
(a) odd number for Allendale, Bamberg, Barnwell, Beaufort, and Berkeley Counties;
(b) even number for Charleston, Clarendon, Colleton, Dorchester, Georgetown, Hampton, Jasper, and Williamsburg Counties;
(2) May in years which end in an:
(a) odd number for Cherokee, Chester, Chesterfield, Darlington, Dillon, Fairfield, Florence, and Horry Counties;
(b) even number for Lancaster, Marion, Marlboro, Union, and York Counties;
(3) August in years which end in an:
(a) odd number for Calhoun, Kershaw, Lee, Orangeburg, and Sumter Counties;
(b) even number for Richland County;
(4) November in years which end in an:
(a) odd number for Abbeville, Aiken, Anderson, Edgefield, Greenville, and Greenwood Counties;
(b) even number for Laurens, Lexington, McCormick, Newberry, Oconee, Pickens, Saluda, and Spartanburg Counties.
If a license purchased will be for less than twenty-three months because of this section, the license tax must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under subsection (A).
(E) The department, at its discretion and for the efficient administration of the law, may prorate licenses in any manner to implement or change the expiration date established in this section and
(F) A license authorized in this section shall not be issued unless and until the department has completed its background investigation.
(G) An application for a license may be denied or a license may be revoked if the applicant or licensee fails to pay any tax or fee administered by the department.
(H) A license issued under this chapter is a privilege personal to the person to whom it was issued and is not a legal right.
Section 12-22-330. (A) (1) Every machine owner making a machine available for play shall apply for and procure a license from the department for the privilege of making use of the machine in this State.
(2) The machine owner shall pay a biennial fee of four thousand dollars for each machine license. The machine owner shall apply for and obtain from the department the license required by this section before the first day of June every two years or before doing an act taxable under this chapter. All licenses expire May thirty-first the second year of which the license is valid following the date of issue.
(3) A license for a machine shall be issued only to a person who has been licensed pursuant to Section 12-22-320 for use at a licensed establishment. No machine may be operated without a license.
(B) As an alternative to the license required in subsection (A), a person may be granted a nonrefundable license beginning April first and to expire September thirtieth, following the date of issue, which may not be prorated. The fee for this six-month license is one-fourth the biennial license fee.
(C) If a license required in subsection (A) is purchased after June thirtieth, the license tax must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under subsection (A).
(D) The owner or operator of any machine which has multi-player stations shall purchase a separate license for each such station and any such multi-player station counts as a machine or device when determining the number of machines or devices authorized for licensure under this chapter.
(E) A license may not be issued for the operation of a machine that is located, or intended to be located, on a watercraft or vessel plying the territorial waters of this State.
(F) No machine may be operated at an establishment unless the establishment is licensed pursuant to the provisions of Chapter 36 of Title 12.
(G) Upon application being made for a license to operate any machine or apparatus under this chapter, the department may presume that the operation of the machine or apparatus is lawful and when a license has been issued for the operation thereof, the sum paid for the license may not be refunded notwithstanding that the operation of the machine or apparatus is prohibited.
(H) The issuance of a license under the provisions of this chapter by the department does not make lawful the operation of any gambling machine or device, the operation of which is made unlawful under the laws of this State.
(I) Failure to obtain a machine license as required by this chapter makes the machine owner liable for the penalties imposed in this chapter.
(J) A person with a license issued pursuant to this chapter shall notify the department within thirty days of any change in its principals. Any addition to the machine owner's principals of a person not already determined to have met the qualifications of this chapter voids the license unless the addition has been approved in advance by the department. The department shall develop forms and procedures for notification and approval of any change.
(K) No distributor, owner, or operator must be issued a license unless the distributor, owner, or operator has been a resident of the State for two years before the date of application. If the distributor, owner, or operator has more than one principal, then only the principal in whose name the license is issued as provided in Section 12-22-1110(A)(2) must be a resident of the State for two years before the date of application.
Section 12-22-340. (A) No municipality may limit the number of machines within the boundaries of the municipality. A municipality may by ordinance impose a license fee on machines, other than those referred to in Article 15, in an amount not exceeding ten percent of three thousand six hundred dollars of the license fee imposed pursuant to Section 12-22-330(A) for the equivalent license period.
(B) No county may limit the number of machines within the boundaries of a county. A county may by ordinance impose a license fee on machines, other than those referred to in Article 15, located in an unincorporated area of the county in an amount not exceeding ten percent of three thousand six hundred dollars of the license fee imposed pursuant to Section 12-22-330(A) for the equivalent license period.
Section 12-22-350. (A) (1) The department and the division must be given within ten business days written notice of:
(a) any termination of a business, transfer of a business, or a change of ownership, possession, or control of an interest in a business holding a license issued under Section 12-22-320; and
(b) any transfer of a machine, or a change of ownership, possession, or control of a machine licensed pursuant to Section 12-22-330.
(2) The transfer of ten percent or more of a sole proprietorship, partnership interest, limited partnership interest, or corporate stock is considered a change in ownership. An indirect ownership interest that would compel the disclosure and background information required of a principal for an initial application must be disclosed to the department pursuant to this provision.
(3) Anyone whose interest in the business has ended must immediately surrender to the department any licenses in his possession related to that business or machine. Failure to surrender a license as required by this subsection is justification for revocation of any and all licenses issued by the department and held by the licensee.
(B)(1) A person who acquires an interest in a business which holds licenses issued under this chapter, upon initiating the application process for a biennial license issued under 12-22-330, may be issued a temporary license by the department at the time of the acquisition if the applicant or location for which the temporary license is sought is not considered by the department to be ineligible under the provisions of this chapter or the applicant currently holds a valid license previously issued pursuant to this chapter, or the applicant has had a criminal history background check conducted by the division within the past thirty days.
(2) A temporary license issued pursuant to item (1) of this subsection is valid until a biennial license is approved or disapproved by the department, but in no case is it valid for more than one hundred eighty days from the date of issuance. The department may revoke a temporary license if the applicant fails to pursue the biennial license in a timely manner. The department shall collect a fee of twenty-five dollars for each temporary license.
(C) (1) Following notice as provided in subsection (A), a machine license issued pursuant to Section 12-22-330 may be transferred from one person licensed pursuant to Section 12-22-320 to another person licensed pursuant to Section 12-22-320. Any machine license transferred in accordance with this subsection shall remain in effect for the remainder of the period for which the license was issued to the
(2) A machine license shall not be transferred to any person who is not licensed pursuant to Section 12-22-320.
(3) If a machine is proposed to be transferred to a person who is not licensed pursuant to this chapter, then the machine shall not be used in an establishment until the transferee is licensed as a machine owner pursuant to this chapter.
Section 12-22-360. Appeals of department decisions, including appeals of penalties, or of denied, suspended, or revoked licenses, must be conducted in accordance with the South Carolina Revenue Procedures Act in Chapter 60 of this title.
Section 12-22-510. (A) In addition to the license fees, a tax of twenty-five percent of the net machine income of every machine is imposed on the machine owner.
(B) The tax imposed by this section must be collected and remitted to the department by the machine owner. The machine owner shall be responsible for collecting and remitting any portion of the tax imposed by this section which is agreed in any manner to be paid by any other person, including the machine operator, distributor, or the owner, lessee, or manager of an establishment at which the machine is operated or offered for operation.
(C) The tax imposed by this section is effective beginning on the first day of the first month following the effective date of this chapter.
Section 12-22-520. (A) Unless the department exempts a taxpayer from this requirement, the taxes in this article must be paid to the department by the machine owner through electronic transfer of funds. The machine owner shall furnish the department all information and bank authorization required to facilitate the timely payment of taxes due to the State. Machine owners shall provide the department thirty days' advance notice of any proposed bank account changes to ensure the uninterrupted electronic transfer of funds.
(B) After notice to taxpayers, the department may draw upon the designated account to satisfy the tax indebtedness under this chapter on the twentieth day of the month following the month for which taxes accrued. The machine owner shall maintain an account balance in an amount sufficient to cover the amount drawn by the department. The failure to maintain an adequate balance in the account as required in this section authorizes the department to find the tax in jeopardy and to
(C) Each machine owner, machine operator, and licensed establishment shall report to the department for each calendar quarter, by the twentieth of the month following end of the quarter, the following information for each machine:
(1) name and address of location of the machine;
(2) denomination, whether five cents, etc. of the game;
(3) the name of the game;
(4) the name of the individual(s) collecting money from the machine and the owner of the machine;
(5) the date(s) of collection;
(6) the date of previous collection;
(7) income number at commencement of the reporting period;
(8) income number at the end of the reporting period;
(9) beginning payout number;
(10) ending payout number;
(11) payout to players;
(12) gross profit;
(13) the percentage of net profits divided between owner and the location and the formula by which those figures are calculated; and
(14) the name, address, telephone number, and information regarding any refunds to players.
(D) For purposes of the reporting requirements of this section, a person who has a security interest, lease agreement, or similar financing arrangement in a machine is not considered a machine owner.
(E) For machines connected to the central computer monitoring system, the department shall determine the tax on net machine income as of the last day of each month. The department shall notify the machine owner in the form of a billing statement of the amount of tax the department shall draw from the designated account to satisfy the net machine income tax.
Section 12-22-530. (A) On or before the twentieth day of the month following the end of each month, every person subject to the tax imposed by this section shall render to the department, on a form or in a manner prescribed by it, the tax due and payable and a true and correct statement showing the net machine income for the reporting period together with other information the department may require. A return is timely filed if the return is mailed and postmarked on or before the due date.
(B) As an interim procedure to collect the taxes in this article between the effective date of this chapter and when a machine is connected to the central computer monitoring system, the department shall develop forms and procedures to facilitate the return and payment of these taxes. This interim procedure also must be used during any period when the central computer monitoring system is unable to determine taxes as provided in Section 12-22-520. The taxes are due and payable and the return is due on or before the twentieth day of the month following the month in which the taxes accrue.
Section 12-22-540. (A) The taxpayer shall report to the department any discrepancies in the department's statement of taxes based on a machine's mechanical and electronic meter readings, or otherwise. The owner shall submit to the department the maintenance log that includes current mechanical meter readings and the audit ticket that contains electronic meter readings generated by the machine's software for each machine that reflects a discrepancy. Until a discrepancy is resolved, the department shall not make credit adjustments. Electronic accounting meters shall not be cleared outside the presence of an authorized department or division employee. Any discrepancies that cannot be resolved because of unauthorized meter clearing shall be resolved in favor of the State. The burden of proving a discrepancy is upon the taxpayer.
(B) A licensed establishment may return to a player money which the player deposited into the machine for which the machine did not permit play and would not print a validated payout ticket; and in this event shall obtain and record the date, time, amount, and licensed machine number of the refund, and the name, addresses, telephone number, social security number, and driver's license identification number and state, of that player. Thereafter, the taxpayer may file a claim for refund for any taxes paid under this chapter on the amount returned to the player in accordance with Chapter 60 of this title, but in addition to the information required by Section 12-60-470, the taxpayer shall file the information required to be maintained by the licensed establishment under this subsection.
Section 12-22-550. Failure to remit taxes imposed under this chapter shall result in immediate disabling of the machines and is justification for the revocation of the machine license and machine owner's license.
Section 12-22-560. (A)(1) All revenue derived from the tax imposed pursuant to Section 12-22-510, except as herein provided, must be credited to a fund separate and distinct in the general fund to be known
(B) Until June 30, 2000, the department may retain six hundred dollars per machine license fee to be expended as follows: four hundred dollars per machine license fee shall be expended by the department and used exclusively for administration and enforcement of this chapter, and two hundred dollars per machine license fee shall be transferred to the division and used exclusively for administration and enforcement of this chapter. Beginning July 1, 2000 and effective beginning with the general appropriation act for the fiscal year 2000-2001, the General Assembly in the annual general appropriation act shall appropriate to the department funds in an amount not to exceed four hundred dollars per machine license fee to be used exclusively for administration and enforcement of this chapter.
Section 12-22-710. (A) A licensed establishment, including its employees and agents, may not:
(1) maintain, possess, or otherwise allow on its premises more than five machines, except as provided in section 12-22-740 ;
(2) advertise, or allow advertising, in any manner for the playing of the machines, except as provided in Section 12-22-760;
(3) offer or allow to be offered any inducement to a person for the playing of machines;
(4) knowingly allow anyone under the age of twenty-one to play machines;
(5) allow anyone under the age of twenty-one to receive payouts as a result of playing machines;
(6) operate machines between the hours of two o'clock Sunday morning and six o'clock a.m. Monday morning;
(7) violate valid local zoning ordinances
(8) cash any business, personal, or employment checks of any individual or business;
(9) make loans to any individual or business;
(10) accept a credit card or debit card from a player for the exchange or purchase of game credits or for advancement of coins or currency;
(11) be located within five hundred feet, or within three hundred feet in a municipality, of any of these locations: a public or private elementary, middle, or secondary school; a public or private kindergarten or daycare; a public playground or park; a public
(12) knowingly allow playing of machines by a person in an intoxicated condition; or
(13) extend credit, in any manner, to a player. A machine operator or licensed establishment shall not allow an agent or any employee of the operator or establishment to provide a loan or extension of credit to a player.
(B) A machine owner or operator or any other person shall not at the location of the licensed establishment:
(1) engage in business as a Level I or Level II check cashing service, as defined in Section 34-41-10;
(2) engage in business as a deferred presentment service, as defined in Section 34-39-120;
(3) make restricted loans, as defined in Section 37-3-501(3);
(4) make supervised loans, as defined in Section 37-3-501(1); or
(5) make loans on the security of a motor vehicle certificate of title.
(C) The distances in this article shall be measured in a straight line, without regard to intervening structures or objects, from the nearest property line of the lot on which a building or structure is used as a licensed establishment to the nearest property line of the location in subsection (A)(11) of this section or Section 12-22-720(B).
(D) Except as otherwise provided herein, the provisions of this section apply to all applicants and licensees. However, the distance requirements set forth in this subsection (A) do not apply to:
(1) an establishment which operated or allowed the operation of machines for which licenses were issued before May 30, 1993; or
(2) an establishment which:
(a) operated or allowed the operation of machines for which licenses were issued on or after May 30, 1993 and which were in operation on the effective date of this chapter; and
(b) was in compliance with the distance requirements in effect prior to the enactment of this chapter.
(E) Each county or municipality, by ordinance, may determine the zoning of locations for the operation of machines. The zoning restrictions may not be less restrictive than this chapter.
Section 12-22-720. (A) An establishment license must not be issued until the department determines that the location is in compliance with Section 12-22-710.
(B)(1) The department shall not issue an establishment license to a new establishment that is closer than one hundred feet to an existing establishment even if the applicant has different principals than the existing licensed establishment(s) or where a licensure application for another establishment is pending.
(2) For purposes of this section:
(a) `new establishment' means an establishment which did not have machines on May 31, 1999; and
(b) an `existing establishment' means:
(i) an establishment which is licensed at the time of the application for a license for a new establishment; or
(ii) an establishment which had machines on May 31, 1999 and which is under the control of the same person who was licensed for the location under the provisions of Chapter 36, Title 12 on May 31, 1999.
(3) Notwithstanding the provisions of item (1) of this subsection, the department may issue an establishment license after notice and the procedures in this section if the department otherwise determines that the location is a proper one.
(C)(1) The person applying for the establishment license closer than permitted under subsection (B)(1) shall place a notice at least once a week for three consecutive weeks in a newspaper or newspapers most likely to provide notice to interested citizens of the county, city, or community in which the person seeks to locate the proposed establishment. The department shall determine which newspaper or newspapers meet the requirements of this section based on available circulation figures. If a newspaper is published within the county and historically has been the newspaper where legal notices are published, the advertisements published in that newspaper meet the requirements of this section. Notice also must be given by displaying a sign for fifteen consecutive days at the site of the proposed establishment. The sign shall:
(a) state that a license for the operation of machines is being sought and that the establishment will be able to issue cash payouts from these machines;
(b) tell an interested person where and when to send a written protest of the application;
(c) be in bold print; and
(d) cover a space at least eleven inches wide and eight and one-half inches high.
(2) A person residing in the county in which an establishment license is requested to be granted pursuant to subsection (B)(3), or a person residing within five miles of the establishment for which an establishment license is requested pursuant to subsection (B)(3), may, before seven days after the last published notice, protest the issuance of the license if a written protest is filed with the department setting forth:
(a) the name, address, and telephone number of the person filing the protest;
(b) the name of the applicant for the establishment license and the address of the establishment sought to be licensed;
(c) the specific reasons why the application should be denied; and
(d) whether the protestant wishes to attend and offer testimony before a contested case hearing before the Administrative Law Judge Division.
(3) Upon receipt of a timely filed protest, seeking a contested hearing before the Administrative Law Judge Division, the department may not issue the establishment license but shall forward the file and its determination to the Administrative Law Judge Division.
(4) If the protestant expresses no desire to attend a contested hearing and offer testimony, the protest is considered invalid, and the department shall continue to process the application and make its determination of whether all other statutory requirements for the license are met.
(5) The department shall determine whether the location is a proper one. Any protestor or the applicant may appeal the department's determination.
Section 12-22-730. The department must issue regulations to strictly enforce the provisions of this chapter so as to prevent the licensure of an establishment or establishments that would allow machine operators to circumvent the prohibition against more than five machines being located on any premises. Nothing in this section, and the terms as they are defined in this chapter, shall be construed to be unenforceable because of the pendency of, or the failure to issue, any regulations by the department. This chapter must be liberally construed to supercede any regulation in existence after the effective date of this act that would impede the department in any way from strictly enforcing the provisions of this chapter regarding the prohibition against more than five machines being licensed on the same premises.
Section 12-22-740. (A) Except as provided in subsection (B), machines shall not be operated or continue to operate at any casino, casino-style gaming operations, video gaming mall, or combination of 'single place or premises' as that term was applied in Regulation 117-190. In determining whether an establishment violates this section, the department shall consider whether more than one licensed establishment operates within a single structure, unless the distance between such licensed establishments exceeds one hundred feet and the licensed establishments are not owned by the same person, do not have any of the same principals, and the owner of one is not a principal of another licensed establishment.
(B)(1) No entity or entities of whatever description or kind which, prior to May 31, 1999, conducted business as a casino or otherwise through and by a combination, confederation, or aggregation of 'single place or premises' as that term prior to May 31, 1999, was interpreted and applied by the department in regulation may operate or continue to operate except as provided in this subsection.
(2) After December 1, 1999, entities as described in item (1) of this subsection shall be permitted to re-apply for and may be granted renewal of a license that, notwithstanding any other provision of the law, must expire and may not be renewed after July 1, 2004. Pursuant to Sections 1, 9, and 11 of Article V, the General Assembly provides that the Magistrate, Circuit and Appellate Courts do not have jurisdiction to extend the termination date of July 1, 2004, and may not enjoin the enforcement of this subsection by the department or the division. Nothing in this subsection shall be construed to affect the jurisdiction of the state courts regarding other provisions of this chapter.
(3)(a) After July 1, 2004, entities as described in item (1) of this subsection this subsection may continue to operate within a county if the county governing body, prior to July 1, 2004, adopts an ordinance authorizing the operation of such entities.
(b) An ordinance adopted pursuant to this item may not authorize the operation of an entity described in item (1) of this subsection if the entity was not in operation on May 31, 1999.
(4) If the provisions of item (3) are declared unconstitutional by a final order of a court of competent jurisdiction, then the provisions of Section 12-22-710(A)(1) shall apply in the entire state.
(C) All establishments which conducted business as a casino or otherwise within a structure which prior to May 31, 1999, contained
(1) on or before January 1, 2000, conduct business as a single operation and be licensed as a single licensed establishment to maintain on the premises more than five licensed machines;
(2) advise the department of the machine and establishment licenses currently issued for the structure and return the establishment licenses to the department at the time the new license for the single licensed establishment is approved by the department and issued;
(3) once licensed as a single establishment, never have licenses for any number of machines greater than the total number of machines licensed in the structure as of May 31, 1999, as asserted in the statement required in item (5);
(4) never increase the number of machines permitted by this section after any reduction in the number of machines at the licensed establishment; provided, that a reduction, as that term is used in this subsection, does not include the routine removal and replacement of machines for maintenance, repair, service, or similar purpose; and
(5) on or before January 1, 2000, file with the department a sworn statement asserting any and all reasons why it is entitled to the benefits conferred by this subsection (B).
(D) Any person claiming the benefits of subsection (B) shall have the burden of proof and must establish by clear and convincing evidence that he is entitled to operate the structure as a single licensed establishment with more than five licensed machines. Any transferee of an interest in such an establishment shall be subject to all limitations of this section.
Section 12-22-750. (A) The offering of an inducement as prohibited in Section 12-22-710(A)(3) means any attempt to influence a person to play machines including, but not limited to:
(1) free or discounted food or beverages;
(2) free or discounted games other than credits won through authorized play;
(3) prizes, either at the doors or through drawings or other means;
(4) coupons offering any of the above;
(5) cash other than authorized payouts; or
(6) jackpots or other progressive winnings schemes.
These specified inducements are not exclusive. Other attempts to influence a person to play a machine are prohibited.
(B) A licensed establishment that engages in activities other than the operation of machines may not offer any inducement unless the licensed establishment is able to prove that the inducements offered are not directed at machine players and that the offerings are part of the normal business practice of similar activities in this State.
Section 12-22-760. (A) A licensed establishment or licensed machine operator or any employee or agent of the licensee, may only advertise, or allow the advertising of, the playing of machines by utilizing a single green square not exceeding four by four feet which may be placed on any side or sides of the building in which the licensed establishment is located.
(B) Nothing in this section prevents a licensed establishment from advertising goods and services, other than the playing of machines, except as otherwise prohibited by law.
(C) No person may advertise in a misleading or deceptive manner.
(D) To protect the public from misleading, deceptive, or aggressive sales practices, no person shall advertise the playing of machines or a business regulated under this chapter in any manner that suggests winning, money, or wealth.
(E) Due to the pervasiveness of the medium and the children in the audience, no person may advertise the playing of machines in any electronic, broadcast or print medium.
(F) No person shall advertise in any manner for the playing of machines within one thousand feet of a public or private school, daycare center, kindergarten, residence, park, playground, or church
(G) Signs and nonbroadcast advertising in existence on the effective date of this chapter are not subject to the provisions of this section until July 1, 2000, if notice is given to the department as required in this chapter.
(H) A machine owner, manufacturer, or distributor may advertise his enterprise but may not sponsor, promote, or otherwise advertise the playing of games and may not advertise on behalf of a machine operator or licensed establishment.
Section 12-22-770. (A) A licensed establishment must have posted and visible to the public at least one sign with the following words printed on it:
(1) 'A person must be twenty-one years of age to play a video game machine or receive payouts from a video game machine.'
(2) 'It is illegal to offer inducements to a person to play video game machines.'
(3) 'All games are random. Games are set to issue a minimum theoretical payout of between ninety and ninety-nine percent.'
(4) 'This establishment maintains a copy of the video game machine laws on the premises for review by players at their request.'
(5) 'Validated tickets may be redeemed for cash.'
(6) 'Violators are subject to civil and criminal penalties.'
(7) 'Violations may be reported to South Carolina Law Enforcement Division or your local law enforcement agency.'
(8) 'No payout of greater than five hundred dollars is allowed, regardless of the amount deposited in the machine.'
(B) The sign required by subsection (A) must be placed behind the machine, but must be visible and readable by the person playing the machine. Each letter on the sign must be at least two inches high.
(C) Each machine licensed under this chapter must have a prominently displayed sign citing the penalties provided for violations of Sections 12-22-1330(1), 12-22-1330(2), and 12-22-1360 on the wall above the machine or affixed prominently to the machine. The department may provide sample language for these signs.
(D) In addition to all other signs required under this section, a white warning label must be prominently and permanently affixed to each machine. The label must contain the phrase 'WARNING: GAMBLING CAN BE ADDICTIVE' in capital black letters not less than two and one-half inches in height and one and one-half inches in width, followed by the phrase 'CALL 1-XXX-XXX-XXXX FOR HELP WITH GAMBLING ADDICTION' in capital black letters not less than one inch in height and one-half inch in width. The toll free number to be inserted on the label must be provided by the South Carolina Department of Alcohol and Other Drug Abuse Services.
Section 12-22-780. (A) Any person who would otherwise be subject to the restrictions of this chapter but who seeks to use the provisions of Sections 12-22-710(D), 12-22-710(E)(2), 12-22-740(B), or 12-22-760(G), must, on or before January 1, 2000:
(1) notify the department in a statement made under penalties of perjury that he is eligible to use the provision;
(2) state the specific and detailed reasons for claiming the privileges of the specific provision claimed; and
(3) identify all licenses associated with the claim.
(B) The person claiming the benefit of Sections 12-22-710(D), 12-22-710(E)(2), 12-22-740(B), or 12-22-760(G)shall have the burden of proof and must establish by clear and convincing evidence that he is entitled to the benefits claimed.
Section 12-22-910. (A) Before a machine may be connected or remain connected to the central computer monitoring system, the machine must have a current and valid machine license. The machine owner and machine operator, and the establishment at which the machine is located must have current and valid licenses as required by this chapter.
(B) Each machine or device licensed pursuant to this chapter must be operated in a stand-alone fashion and may not be linked in any way to another machine, except as otherwise provided in this chapter.
(C) Any machine which is not connected to the central computer monitoring system after February 1, 2000 shall be considered to be illegal and a contraband machine.
Section 12-22-920. (A) All machines, location controllers and associated modems, and computer chips must be verifiably of a make, model, and software version certified by the department or a testing lab selected by the department before the items may be possessed, owned, operated, or allowed to operate at any place within this State.
(B) A person may not possess, own, operate, or allow the operation of a contraband machine or device at any place within this State.
Section 12-22-930. (A) Not later than December 1, 1999:
(1) each machine must meet standards provided in subsection (B) of this section and the machine owner shall certify to the department, under oath and in a form prescribed by the department, that the machines are prepared for connection to the central computer monitoring system; or
(2) each machine owner must certify to the department, under oath and in a form prescribed by the department, that he has ordered all location controllers and associated modems, computer chips, associated equipment, software, hardware, and any other equipment required by this chapter in order for his machines to be connected to the central computer monitoring system.
(B) Not later than December 1, 1999 and subject to the provisions of subsection (A)(2), all machines and equipment must:
(1) have games that are random and have a minimum theoretical payback of between ninety percent and ninety-nine percent, within standard rounding, in which the theoretical payback percentage is determined using standard methods of probability theory at optimal play;
(2) be secure and accountable;
(3) not operate in a misleading or deceptive manner;
(4) not have any means of manipulation that affect the random probabilities of winning a game;
(5) have one or more mechanisms that accept only coins or cash in the form of bills. The mechanisms must be designed to prevent obtaining credits without paying by stringing, slamming, drilling, or other means;
(6) have one or more metering devices that keep a record of (a) all cash inserted or deposited into the machine; (b) credits played, (c) credits won, (d) validated cash ticket amounts, and (e) other information prescribed by the department. Cash records must include total coins and bills accepted and total credit generated by coin and bill acceptors;
(7) be capable of being accessed on demand by telecommunication through a location controller from the central computer monitoring system for purposes of polling or reading device activities and for central computer remote enabling or disabling of machine operations;
(8) be capable of interfacing with a central computer monitoring system through a location controller;
(9) when required by the department after certification, be connected to the central computer monitoring system through a location controller; and
(10) meet the standards set by the department and those set forth in this chapter.
(C)(1) Machines not meeting the standards of this chapter, or the standards of the department, shall not be licensed. The license of any machine which fails to maintain the standards of this chapter shall be revoked.
(2) The department shall connect licensed machines at licensed establishments meeting the requirements of this section to the central computer monitoring system as soon as is practicable after receipt of certification from the machine owner that a machine meets the standards of this section , no later than February 1, 2000. A machine owner who provides the certification provided in subsection(A) may provide payouts as provided in Section 12-22-1020 beginning on December 1, 1999. A machine owner who provides the certification provided in subsection (A)(2) shall provide the certification provided in subsection (A)(1) by February 1, 2000; if the certification is not
(D) When the department approves the software and logic board of a machine, the division must require the use of a prescribed security seal process to guard against any unauthorized tampering or changes to the erasable programmable read only memory (EPROM) chip or chips, or future, similar such technology. Any repair, replacement, or adjustment to the machine's EPROM chips or similar such technology must be done in the presence of an employee of the division.
Section 12-22-940. (A) As part of the central computer monitoring system, each establishment operating machines must provide a location controller and modem meeting department requirements. Each location controller must be capable of receiving, storing, and transmitting to the central computer monitoring system all information received from and required of machines. Each location controller shall be capable of supporting at least five machines.
(B) This section applies to those location controllers which participate in the system as separate hardware entities and any head of string location controller which meets the specifications of this section.
(C) The cost for purchasing, leasing, and installing, the location controller is the responsibility of the licensed establishment in which the machines are located.
(D) Each location controller must be able to perform the following functions:
(1) communicate with machines in an on-line environment;
(2) store log entries of openings of machine game doors;
(3) store log entries of openings of machine coin or currency doors;
(4) authorize a machine to be taken off-line from the location controller and store a log of this event;
(5) disable a machine and store a log entry upon a game door open, and a coin door open;
(6) store a log entry if machine is off-line from the location controller;
(7) store a log entry for machine tampering if the signal received from the machine is discontinuous or corrupted in such a manner as to constitute more than spurious noise in the system;
(8) store a log entry of reenabling a machine that has been disabled;
(9) log entries which include a VGMID for each machine and date/time stamp;
(10) communicate to the central computer system the information which has been gathered from the machines and any log entries stored during the period using a protocol provided by the department or designated agent;
(11) have sufficient storage capacity to maintain at least five days of data generated from the maximum playing sessions from the maximum number of associated machines linked to the location controller. The data must be stored immediately in a manner that allows, on demand, real time access by the central computer monitoring system. Access to data stored in the location controller must be restricted to authorized entry from the central computer monitoring system and other authorized inquiry only access that has been preapproved by the department;
(12) have an internal clock;
(13) be protected from unauthorized interference or tampering by any person or external device or force, such as to corrupt or alter data or corrupt or suspend communication signals or transmitted data from the machines or to the central computer monitoring system. This requirement extends to the location controller as well as its associated communication device, and cabling between the controller, the machines, and communication device;
(14) be constructed of materials and protected in such a manner as to allow it to operate in suboptimal environments such as nonregulated temperature, dusty, tobacco-smoke filled, and humid conditions. Locations using a location controller that is not constructed so as to operate in these environments and that fail to operate properly are not allowed to operate machines until the location controller is repaired or replaced so as to operate in such a suboptimal environment; and
(15) be capable of validating tickets printed by a machine.
Section 12-22-950. The department may set standards for machines, modems, location controllers, the central computer monitoring system, and associated equipment including, but not limited to, technical standards, hardware specifications, software specifications, and standards relating to multiplayer units. Applicants must meet these standards before any license may be issued. The department may revise technical standards as is necessary providing sufficient time for compliance by licensees. The technical standards established by the department must, to the extent possible, within the limitation of this chapter, maximize competition among manufacturers.
Section 12-22-960. The burden of proof that a machine, game, location controller, modem, or any part of a machine meets the required
Section 12-22-970. A machine owner shall notify the department before a machine is added, replaced, disconnected, or transferred to another establishment.
Section 12-22-980. The licensed establishment or machine owner shall notify the department before a location controller is added, disconnected, or transferred to another establishment.
Section 12-22-990. (A) Each location controller must be programmed automatically to disable the play of all machines connected to the location controller, if the location controller has not been polled by the central computer monitoring system for the purpose of collecting meter and event data, for a period to be determined by the department, but not less than seventy-two hours. The machine must be enabled when communication has been restored.
(B) Whenever a machine is disabled during play of a game, the following must occur:
(1) a message must appear on the screen warning the player that the machine is about to be disabled and the player must be informed that one minute remains to complete the game;
(2) a count-down timer must be displayed;
(3) if the player completes the game, all payouts must be reported on a payout ticket and no other games are allowed to be played on that machine; and
(4) if the player has not completed the game in the minute allotted, then the machine shall complete the hand according to the
Section 12-22-1000. Each machine placed in operation in this State must have affixed by the manufacturer a VGMID assigned by the department. Each machine owner shall notify the department in writing of the receipt of a machine. Manufacturers, distributors, and machine owners shall make machines and associated equipment available for inspection by the department or division. No machine may be transported out-of-state until the VGMID has been removed. No one other than an authorized department or division employee shall remove the VGMID. For qualifying machines already located in the State, the department shall assign, and the division shall affix, the VGMID. The VGMID must be programmed into the machine and serves as the machine's unique identifier for purposes of logging events and reporting play statistics.
Section 12-22-1010. (A) Every machine owner shall maintain records for each machine showing the manufacturers' serial number; model and type of machine; the VGMID; the license number; the location's name, address, and telephone number; the machine operator; the date the machine entered this State; the date it entered the location; the date the machine went on-line; and the bank account from which the taxes are withdrawn.
(B) The machine owner shall maintain information relating to the payment of any money or compensation paid to any persons to operate the machine. Information required by this section must be available on demand for inspection by a representative of the department or division.
Section 12-22-1020. (A) No person may possess, own, operate, maintain for use or operation, or allow the operation of, any machines that:
(1) allow more than three dollars in credits to be bet, risked, wagered, or played on any hand;
(2) issue payouts of more than five hundred dollars to a player, regardless of the amount of money deposited into the machine;
(3) require any minimum number of credits before issuance of a validated payout ticket;
(4) permit any player to receive a payout greater than five hundred dollars, regardless of the amount of money deposited into the machine;
(5) produce at the completion of the play period validated tickets worth more than five hundred dollars regardless of the amount deposited in the machine;
(6) allow at the completion of the play period the production of multiple tickets with a collective value of greater than five hundred dollars or engage in any other schemes to evade the five hundred dollars payout limitation; or
(7) offer on the face of the machine or in any pay table the possibility of receiving a payout of greater than five hundred dollars at the completion of the play period.
(B)(1) Any licensed machine that provides payouts must limit the amount bet, risked, wagered or played on any hand to three dollars and the payout must be limited to credits equal to five hundred dollars.
(2) When a player earns credits equaling or exceeding five hundred dollars:
(a) the machine must: temporarily disable that player station, immediately delete all credits or their equivalents with a value greater than five hundred dollars, immediately report on a payout ticket payable to that player or player station, reset to zero or `game over'; and
(b) that player or another player at that player station may not continue to play until more cash or coin is deposited into the machine.
(3) The machine must be programmed so that other players of a multi-player unit are not affected if one or more players is issued a payout ticket pursuant to this provision.
(4) The central computer monitoring system shall monitor the deletion prior to the completion of the play period and the printing of validated payout tickets all credits or their equivalents with a value of greater than five hundred dollars.
(C) A machine operator may only redeem tickets for credits awarded on licensed machines located in that licensed establishment. A ticket must be validated by the location controller before any payout is made.
(D) At the time the player presents a payout ticket to the machine operator or his agent for a cash payout, the machine operator or his agent shall require the person presenting the payout ticket to write or otherwise have placed on the payout ticket the person's name, address, and telephone number. Upon the provision of the payout ticket with the above required information, and upon presentation of a form of verifiable identification as approved by the department, the machine operator or his agent may make a cash payout. The payout tickets
(E) Any person offering money, prize, bonus or anything of value for earning credits above what is printed on a payout ticket is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than ten years and may be fined not more than twenty-five thousand dollars.
(F) A person licensed pursuant to this chapter violating this section shall also be subject to a civil penalty of revocation of the establishment, operator, or owner license for five years and may be fined an amount not to exceed one thousand dollars per violation.
Section 12-22-1030. A machine must be disposed of in a manner that makes it incapable of use or operation in any video game or other gaming or amusement activity. A machine may not be disposed of until notice has been given to the department as provided in this section. An owner desiring to dispose of an unsaleable or damaged machine shall notify the department in writing before disposal and provide the following information in a manner as directed by the department:
(1) the full name, address, and license number of the person or entity disposing of the machine;
(2) the manufacturer's serial number of the machine;
(3) the model number and description of the machine;
(4) the manufacturer of the machine;
(5) the VGMID of the machine;
(6) the hard meter readings of the machine;
(7) the licensed establishment at which the machine was located; and
(8) the proposed manner, time, and place of disposal.
Section 12-22-1040. A machine must not simulate bingo or a slot machine.
Section 12-22-1050. Each machine must contain a single printing mechanism capable of printing an original ticket and retaining an exact copy which is subject to inspection by the department. Tickets must contain any information the department determines to be reasonable for the efficient administration of this chapter. The department shall provide manufacturers information as to the information needed on a ticket and the placement of information on the ticket.
Section 12-22-1060. All machines, location controllers, and the central computer monitoring system selected by the department must perform correctly before, during, and after the year 2000, with no error
Section 12-22-1070. (A) The department shall disable machines via the central computer monitoring system for the following reasons:
(1) the establishment license or retail sales tax license at the establishment where the machines are located has been revoked or suspended;
(2) the license of the machine has been revoked or suspended;
(3) the machine owner's license has been revoked or suspended;
(4) the machine operator's license has been revoked or suspended;
(5) the establishment license, machine license, machine owner's license, or machine operator's license has expired;
(6) the central computer monitoring system has registered a violation of system integrity by a machine. A machine disabled for this reason will be enabled again as soon as the problem has been resolved;
(7) the machine owner or the machine operator has requested that the machine be disabled for any reason, such as relocation, upgrading, or repair; or
(8) the bank account from which taxes are paid has insufficient funds to pay the entire tax due upon the due date.
(B)(1) All persons who have notified the department of an ownership or lien interest in a machine shall be notified of a proceeding to revoke licenses that may result in disabling under this section. A licensee whose machine, and any part of the machine, is disabled for reasons in (A)(1), (A)(2), (A)(3), or (A)(4) shall not be licensed or permitted to operate in this State for five years from the date of revocation.
(2) A machine, and any part of the machine, shall not operate in this State for five years from the date of revocation, if the machine is disabled for the reasons stated in:
(a) subsection (A)(1)or (A)(4), if the machine owner and the person holding the establishment license are the same person; or
(b) subsections (A) (2) or (A)(3).
(C) All persons who have notified the department of an ownership interest in an establishment shall be notified of a proceeding to revoke licenses that may result in disabling under Section (A)(1). If machines are disabled at an establishment for the reason in (A)(1), the establishment may not operate, or allow the operation of, machines for five years from the date of the revocation or suspension.
Section 12-22-1080. The department, in its discretion, may approve, effective upon publication in the State Register, alternative technical provisions provided that the technology maintains the security, account information, and integrity of the machines, location controllers, and central computer monitoring system.
License Applications and Background Investigations
Section 12-22-1110. (A)(1) The department may issue licenses only to qualifying persons. Licenses may be issued only to a person who is a principal of the business seeking the license.
(2) If the applicant for a license has more than one principal, the entity shall designate a principal of good moral character, over the age of twenty-one, and a resident of this State for two years, who is deemed the applicant under this article and in whose name the license must be held on behalf of the business. The business entity may substitute a principal if the individual is of good moral character, over the age of twenty-one, and a resident of this State for two years, upon notice in writing of the substitution to the department.
(B) On a form provided by the department and in a manner provided by the department, the applicant for a license must provide detailed information regarding:
(1) the ownership and management of the entity seeking the license, including the name, address, and social security number of each principal as defined in Section 12-22-10(22);
(2) a detailed history and explanation of gambling activities and licenses in other jurisdictions of the applicant and all principals;
(3) federal registration with respect to gambling devices;
(4) the information compelled to be disclosed pursuant to this chapter;
(5) licenses currently held pursuant to this chapter and those licenses held pursuant to Chapter 21 of Title 12 within one year of the date that the application is filed;
(6) information that may be required by the department, such as voter registration, to prove the two-year residency requirement;
(7) in the case of an application for a machine operator or establishment license, the street address and name of any business containing machines that are within a one hundred foot radius of where the applicant intends to locate its machines, if the address and name are reasonably ascertainable to the applicant; and
(8) any other information deemed necessary by the department for the proper administration and enforcement of this chapter.
(C) The department and the division are authorized to develop applications and other forms.
(D) The forms must require the applicant to disclose any present or previous experience or involvement with machines as a manufacturer, distributor, machine owner, machine operator, technicians, or employees. Present or previous experience or involvement includes the control of gambling devices as a machine owner or machine operator; employment with the machine owner or machine operator gambling devices; employment in establishments where gambling is offered to the public; and conviction of violation of federal, state, or local gaming laws in any jurisdiction.
(E) The applicant shall submit proof with the application that he does not owe any federal or state delinquent taxes, penalties, or interest.
(F) As a condition of receiving a license under the provisions of this chapter, each licensee shall agree that the division, the department, and their agents and employees, shall have unrestricted access and the right to inspect any premises under the control of the licensee in which any activity relating to the provisions of this chapter is conducted.
(G) An application which contains material omissions or misrepresentations is cause for denial, suspension, or revocation of a license and disabling of all machines of that licensee.
(H) Failure to comply with a reasonable request of the department is grounds to deny or revoke a license.
Section 12-22-1120. Each applicant shall immediately make available for inspection, by any department or division employee, all records and the establishments where machines are placed or operated, or where machines, devices, or equipment are manufactured, sold, serviced, or distributed.
Section 12-22-1130. (A) The applicant shall file a duplicate application with the department. The department shall forward one of the applications to the division. The division shall return the background investigation to the department.
(B) Unless the time requirements for issuing a license are waived by the applicant, the department must make its decision on whether to issue a license to the applicant not later than sixty days after the completion of the background investigation, including the fingerprint reviews, and the recommendation, if any, of the division, or not later than one hundred eighty days from the date a complete application is filed with the department, whichever occurs first. The department must inform each applicant of the department's decision.
(C) The department shall determine whether the applicant owes any delinquent state taxes, fines, penalties, or interest.
(D) The department may not issue any license until the background investigations are concluded. The department shall make affirmative determination that the applicant is qualified and the applicable license or associated fees have been paid before issuing any license.
(E) The department shall notify the applicant by mail if an application is incomplete. The notification must be sent to the address on the application. The notification must state the deficiencies in the application. If after the second notice of an incomplete application the applicant has not responded, the department shall consider the application withdrawn.
Section 12-22-1140. (A) The division shall conduct background investigations on those persons associated with the operation of machines as provided in this chapter. A background investigation is defined as a security, criminal, and credit investigation of a principal connected to that business. The division shall conduct the investigations and inspections it considers necessary to fulfill its responsibilities under this chapter.
(B) The division shall:
(1) promptly and in a reasonable order, investigate all applications, enforce the provisions of this chapter, and provide to the department all information to allow the department to issue or deny the license;
(2) provide the department with all information necessary for all actions under this chapter and for all proceedings involving enforcement of the provisions of this chapter or any regulations;
(3) investigate violations under this chapter and any regulations;
(4) conduct continuing review of machine operations through on-site observation and other reasonable means, to assure compliance with this chapter;
(5) receive and take appropriate action on any referral from any law enforcement agency or the department relating to any evidence of a violation of this chapter and regulations;
(6) exchange fingerprint data with, and receive criminal history information from, the Federal Bureau of Investigation or other law enforcement agencies; and
(7) have the authority to request and receive information, materials, and any other data from any person.
(C)(1) A person applying for a license or required under this article to undergo a criminal history background check shall undergo a state
(2) When the applicant has principals it must disclose any information required by the department to obtain fingerprints and criminal background checks for the principals so that an applicant may not circumvent the purpose of this section.
(3) Each applicant with submission of an application shall submit a valid fingerprint card for every principal of the business seeking to be licensed.
(4) At the time of filing the application, the applicant must include certified checks for the fees imposed by the State Law Enforcement Division and the Federal Bureau of Investigation, respectively, for the purpose of conducting fingerprint reviews required by item (1) of this subsection.
(D) In connection with the responsibilities under this chapter, the division or the department and their employees and agents may:
(1) inspect and examine all establishments where machines are operated;
(2) inspect and examine where machines or equipment are manufactured, sold, distributed, or serviced;
(3) inspect all equipment and supplies in, about, upon, or around the establishment;
(4) seize and remove from such establishments and impound any machines, equipment, or supplies for the purposes of examination and inspection;
(5) inspect, examine, and audit all records pertaining to an applicant's operation; and
(6) seize, impound or assume physical control of any book, record, ledger, machine, and boxes and their contents.
(E) The division may obtain warrants for the inspection and seizure of any property possessed, controlled, or otherwise held by any applicant or principal.
(F) The division may inspect any applicant or licensee for compliance with the provisions of this chapter and regulations and to investigate any violations.
Section 12-22-1150. (A) Investigations must be conducted on manufacturers, distributors, establishment owners, machine owners, machine operators, and their principals.
(B) As a condition of receiving a license under the provisions of this chapter, each applicant and principal shall agree that the division and the department have unrestricted access and the right to inspect any premises under the control of the applicant or principal in which occurs any activity related to the provisions of this chapter.
(C) Each applicant and principal, by signature of his application, grants the division the authority to access state, national, and international information for validation of information contained on the application. Any information found at the state, national, or international level which would prevent the applicant from obtaining any license required under this chapter must be used to do so.
(D) Each applicant and principal shall cooperate with the division and the department in the performance of their duties.
Section 12-22-1160. (A) The department shall deny a license if a background investigation of any applicant or principal of an applicant reveals any of the following:
(1) a conviction within fifteen years before the date of the application in any jurisdiction for any of the following offenses:
(a) any offense punishable by imprisonment for two or more years;
(b) any gambling offense;
(c) theft or any crime involving false statements or declarations;
(d) a criminal offense involving fraudulent activity or defined as a fraud;
(e)
(2) a determination of liability for, or an agreement that he was liable for, a civil judgment based in whole or in part upon conduct described in item (1) of this subsection;
(3) omission of any material facts to the division or the department during initial or subsequent background investigations or a misstatement, or untrue statements, of material facts with respect to such investigation;
(4) association with persons or businesses of known criminal background, or persons of disreputable character, that may adversely affect the general credibility, security, integrity, honesty, fairness, or reputation of the State or to the effective regulation of video poker;
(5) failure to cooperate with any legislative investigative committees or other officially constituted body acting on behalf of the United States or any state, county, or municipality which seeks to investigate crimes related to gambling, corruption of public officials, or any organized criminal activities;
(6) that the applicant owes any federal, state, or local delinquent taxes, penalties, or interest; or
(7) except for a manufacturer, the applicant has not been a resident of the State for two years.
(B) The applicant for a license required by this chapter, and all principals of the applicant, must file with the application a sworn statement, under penalties of perjury, affirming that:
(1) the person is not attempting to obtain a license on behalf of any undisclosed person or entity;
(2) the person is of good character, honesty, and integrity;
(3) the person's prior activities, criminal record, if any, reputation, habits, and associations do not pose a threat to the public interest of this State or to the effective regulation and control of video gaming; and
(4) all information provided in the application is true.
Section 12-22-1170. Distributors, principals, machine owners, and machine operators, and any other persons the division or the department considers necessary have an affirmative duty to maintain on file with the department and the division current and correct disclosure of all principals and all material facts required for licensure.
Section 12-22-1180. Each applicant shall bear all risks of unintentional adverse public notice, embarrassment, criticism, damages, or financial loss which may result from any disclosure or publication of any material or information obtained by the department or division pursuant to action on an application.
Section 12-22-1310. (A) A person who fails, neglects, or refuses to comply with the terms and provisions of this chapter or who fails to attach the required license to any machine or device, is subject to a penalty of two thousand five hundred dollars for each failure, and the penalty must be assessed and collected by the department. This penalty must be deposited in the same manner as other monies collected pursuant to this chapter.
(B) With respect to any failure to comply with any provisions of this chapter occurring at a licensed establishment, the machine operator and the machine owner are both liable for any penalty and are both subject to revocation and suspensions as provided in this chapter.
Section 12-22-1320. (A) The department may revoke the licenses of establishments, machine owners, machine operators, and machines used in the establishment and impose a monetary penalty of not less
(B) Any establishment violating a provision of Section 12-22-710 or any provision of a regulation pertaining to Section 12-22-710 may have its privilege for operating or allowing the operation of video game machines suspended as follows:
(1) upon the first violation, the privilege for operating or allowing the operation of machines is suspended for a period of up to six months;
(2) upon the second violation, the privilege for operating or allowing the operation of machines is suspended for a period of up to one year;
(3) upon the third or subsequent violation, the privilege for operating or allowing the operation of machines is suspended for a period of up to eighteen months.
(G)(1) The department, upon a determination that the violation is willful, may refer the violation to the Attorney General or to the appropriate circuit solicitor for criminal prosecution, and, upon conviction, the person must be fined not more than ten thousand dollars or imprisoned not more than two years, or both.
(2) Beginning on July 1, 2004, this subsection shall not apply to violations of Section 12-22-710(A)(1).
Section 12-22-1330. A person is guilty of a felony and, upon conviction, the person must be fined not more than twenty-five thousand dollars or imprisoned not more than five years, or both, if the person willfully:
(1) tampers with a machine, location controller, or associated equipment with intent to interfere with its proper operation or the proper operation of the central computer monitoring system;
(2) manipulates the outcome, payoff, or operation of a machine;
(3) launders or knowingly allows another to launder money through one or more machines;
Section 12-22-1340. The following activities are additional civil violations of this chapter subject to the penalties in Section 12-22-1310:
(1) tampering with a machine, location controller, or any other part, device, or system to interfere with its proper operation or the proper operation of the central computer monitoring system;
(2) operating, or allowing the operation of, machines that are not connected to the central computer monitoring system in accordance with this chapter;
(3) refusing or otherwise preventing the inspection or examination by the department, the division, or any law enforcement officer, of any establishment, and any premises used for the manufacture, distribution, or storage of machines within this State; and
(4) refusing or otherwise preventing the examination by the department or division of revenue, payouts, or net machine income, records or equipment of any licensed or unlicensed machine owner, machine operator, manufacturer, distributor, or establishment.
Section 12-22-1350. (A) A person in possession of, or operating, or allowing the operation of a contraband machine or contraband device at any place within this State is subject to a civil penalty of not more than ten thousand dollars per machine or piece of associated equipment.
(B) When the department or division deems it necessary in connection with subsection (A), it may require the owner of a machine, device, or associate equipment to obtain a certification from an approved testing laboratory that the machine or a game or associate equipment meets the standards and requirements of this chapter. The cost of this certification is the responsibility of the owner of the machine, device, or associated equipment.
(C) Contraband machines, contraband devices, or contraband associate equipment may be seized by any law enforcement officer of the State or any of its political subdivisions who shall appear before any magistrate of the county in which the machine, device, or associated equipment was seized. If the magistrate is satisfied that the item is contraband, the magistrate shall direct that it be destroyed. The magistrate, at his discretion, may order an examination of the item, in person before the magistrate or by an approved testing laboratory, to assist in the determination as to whether the item is contraband.
Section 12-22-1360. Skimming of machine proceeds is the intentional excluding or the taking of any action in an attempt to exclude anything or its value from the deposit, counting, collection, or computation of revenues from machines. Whoever commits skimming of machine proceeds is guilty of a felony and, upon conviction, must be imprisoned for not more than ten years, and must be fined not more than twenty-five thousand dollars, or both.
Section 12-22-1370. No machine owner, manufacturer, distributor, machine operator, or any principal may have any financial interest whatsoever or any loans or business relationship with a testing
Section 12-22-1380. (A) In addition to any other penalties, any machine or device not having attached thereto the required license, or which is improperly licensed, must be seized and confiscated by the department, its agents or employees, and sold at public auction after thirty days' advertisement. Upon payment of the license required, the department may, within its discretion, return any property so seized and confiscated and compromise any penalty assessed.
(B) The owner or person from whom the property is seized may at any time within five days after the seizure repossess the property by filing with the department a bond in cash or a bond executed by a surety company authorized to do business in this State in double the amount of the tax and penalties due. Within ten days thereafter the person must bring action in a court of competent jurisdiction to have the seizure set aside; otherwise, the bond so filed must be declared forfeited by the department.
Section 12-22-1390. (A) When the department or the division is notified in writing that an establishment, owner or distributor is or has been in violation of this chapter and that one or more persons have notice or knowledge of a violation, the department or division shall have thirty days from the date of the receipt of the notice to initiate and enforcement action consistent with this chapter and Title 12.
(B) If the department or division affirmatively declines to act or fails to initiate an enforcement action for the violation within thirty days, the person or persons who have knowledge of the violation may serve written notice upon the department of their intention to file an a request for a proceeding to enforce the violations of the penalty provisions of this chapter in the name of the department or division.
(C) Within thirty days of the receipt of the notice from the person or persons with knowledge of the violation, the department or division shall forward the notice of intent to file a request for a proceeding to the Office of the Attorney General who shall determine:
(1) if the person or persons with knowledge of the violation has sufficient knowledge, expertise and experience to adequately represent the interests of the State, the department and the division in the action; and
(2) if the person or persons with knowledge of the violation are willing to advance all costs and expenses to be incurred in the proceeding.
(D) Upon written certification of Office of Attorney General that these conditions have been met, the person or persons with knowledge of the violation may proceed to commence a proceeding in the Administrative Law Judge Division under the Administrative Procedures Act.
(E) If the Office of the Attorney General denies certification or fails to act on a person's notice within thirty days of receipt, the person or persons with knowledge of a violation of this chapter may move to commence a proceeding before the Administrative Law Judge Division for enforcement of the penalty for the violation.
(F) If no recovery or common fund is recovered in the proceeding the person or persons with knowledge of a violation bears or bear sole responsibility for all costs and expenses incurred and the State bears no liability for reimbursement for any costs of litigation or attorneys fees. Any common fund recovered in the proceeding may go to reimburse actual costs and expenses incurred. The administrative law judge must set the legal fees in accordance with prevailing national standards for hourly attorney's fee rates. No contingency fees may be awarded as a percentage of any common funds recovered.
Section 12-22-1400. Conspiring to subvert the provisions of this chapter is a conspiracy as defined and punished in Section 16-17-410.
Section 12-22-1410. Each violation or each day in violation of a provision of this chapter or any provision of a regulation pertaining to this chapter constitutes a separate offense.
Section 12-22-1420. The penalties authorized by this chapter are effective immediately upon imposition and may not be stayed by any administrative or judicial action.
Section 12-22-1430. In any action under this chapter, no person may raise as a defense that he acted on the advice of his certified public accountant, unless he proves that he supplied that accountant with a copy of this chapter and all relevant regulations.
Section 12-22-1510. Cash payouts are not permitted with respect to the games played on machines and other devices licensed under this article. The provisions of the other articles do not apply to the machines and devices licensed under this article.
Section 12-22-1520. Every person required to obtain a license for any machine or device described in Section 12-22-1530 shall maintain records showing the manufacturer's serial number, model or type of machine, and the location of the machine. The taxpayer shall maintain information relating to the payment of any monies or compensation made to any persons as part of a lease or contractual agreement to operate the machine on the premises of the person. Information required by this section must be available on demand for inspection by a representative of the department.
Section 12-22-1530. (A) Every person who owns and operates, or places for use in another person's place or premises for a share of any revenue, one or more of the following machines or devices shall apply for and procure from the department a license effective for two years for the privilege of making use of the machine or device in this State. The person shall pay for the license a nonrefundable fee of fifty dollars for each machine or device in items (1) and (4), two hundred dollars for each machine or device in item (2), and two thousand dollars for each machine or device in item (3):
(1) a machine for the playing of music or kiddy rides operated by a slot or mechanical amusement devices and juke boxes in which is deposited a coin or thing of value. A machine on which an admissions tax is imposed is exempt from the license provisions of this section;
(2) a machine for the playing of amusements or video games, without free play feature, or machines of the crane type operated by a slot in which is deposited a coin or thing of value and a machine for the playing of games or amusements, which has a free play feature, operated by a slot in which is deposited a coin or thing of value, and the machine is of the nonpayout pin table type with levers or 'flippers' operated by the player by which the course of the balls may be altered or changed. A machine on which an admissions tax is imposed is exempt from the license provisions of this section;
(3) a machine of the nonpayout type, in-line pin game operated by a slot in which is deposited a coin or thing of value except machines of the nonpayout pin table type with levers or 'flippers' operated by the player by which the course of the balls may be altered or changed;
(4) billiard or pocket billiard table, foosball table, bowling lane table, or skeeball table operated for profit.
(B) The license must be purchased in advance on or before the first day of June every two years or before making a machine available for play. All licenses expire May thirty-first the second year of which the license is valid following the date of issue.
(C) Machines which have multiplayer stations must have a separate license for each such station.
(D) As an alternative to the license required in subsection (A), a person may be granted a nonrefundable seasonal license beginning April first and expiring September thirtieth, following the date of issue, which must not be prorated. The fee for this six-month license is one-fourth the biennial license fee.
(E) If the license required in subsection (A) is purchased after June thirtieth, the license fee must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under subsection (A).
(F) Upon application being made for a license to operate any machine, the department may presume that the operation of the machine is lawful, but the issuance by the department of a license does not make lawful the operation of any machine which is unlawful under the laws of this State. When a license has been issued, the sum paid for the license must not be refunded notwithstanding that the operation of the machine or apparatus is prohibited.
(G) Failure to obtain a license as required by this article makes the person liable for the penalties imposed in this article.
(H) Every person who maintains for use, or permits the use, on any place or premises occupied by him, any devices subject to the license imposed by subsection (A) of this section must attach the proper state license to a permanent, nontransferable part of the machine before its operation is commenced.
Section 12-22-1540. (A) In addition to all other licenses required by this article, a person required to obtain a license for any machine or device described in Section 12-22-1530 shall obtain an owner's license biennially as follows:
(1) fifty dollars for devices in Section 12-22-1530(A)(1) and (A)(4);
(2) two hundred dollars for devices in Sections 12-22-1530(A)(2) and 12-22-1530(A)(3).
(B) Only one license is required regardless of the number or type of devices owned or operated, and the cost of that license is the highest fee enumerated in this section for a device owned or operated.
(C) The license may be purchased in advance on or before the first day of June every two years or before making a machine or device available for play. All licenses expire May thirty-first the second year of which the license is valid following the date of issue.
(D) Failure to pay taxes to the State is grounds for the cancellation of the license provided in this section.
(E) The provisions of this section do not apply to any person with a current and valid machine owner's license issued under Article 3 of this chapter.
Section 12-22-1550. In lieu of the licenses required under Sections 12-22-1530 and 12-22-1540, the department may issue a temporary license to persons making application to operate machines or devices required to be licensed under this article at a recognized county or state fair. The temporary license fee is the total amount of license fees required on all machines or devices for which application is made, based upon one-twenty-fourth of the biennial license required under Sections 12-22-1530 and 12-22-1540. The license is valid for the specific location designated on the license and the number of machines for which application was made and expires when the designated fair officially ends.
Section 12-22-1560. Machines or devices licensed pursuant to Section 12-22-1530(A)(1), (A)(2), and (A)(4) are not subject to confiscation for a violation of Section 16-19-30, 16-19-40, 16-19-50, or 16-19-130.
Section 12-22-1570. A person who fails, neglects, or refuses to comply with the provisions of this article, or who fails to attach the required license to any machine or device as required under this article, is subject to a penalty of five hundred dollars for each failure, and the penalty may be assessed and collected by the department. This penalty may be deposited to the credit of the general fund of the State.
Section 12-22-1580. In addition to the penalties above provided, any machine, apparatus, billiard, or pocket billiard table not having attached thereto the required license, or which is improperly licensed, must be seized and confiscated by the department, its agents or employees, and sold at public auction after thirty days' advertisement. Upon payment of the license required, the department may, within its discretion, return any property so seized and confiscated and compromise any penalty assessed.
Section 12-22-1590. Municipalities and counties may levy a license tax on the business tax taxed under this article but in no case may the tax exceed twenty-five dollars.
Section 12-22-1600. Any person who owns or operates machines or devices described in Section 12-22-1530 must have attached to the machine or device information identifying the owner of the machine or device. The identification must be placed on an area of the machine or
Section 12-22-1610. If an unlicensed machine is seized by law enforcement as a prohibited machine under the laws of this State, the department shall assess a penalty equal to the amount of the license fee.
Section 12-22-1700. In accordance with this chapter, the department may set the standards for video game machines, modems, location controllers, software, hardware, the central computer monitoring system, and associated equipment. Failure to comply with these standards subjects the violator to the civil and criminal penalties, including fines, suspensions, and revocations established in this chapter including the provisions relating to the time such penalties apply without regard to stays. Until the department adopts such standards, the standards provided in Parts A through D of this section must apply and must be met before issuance of a license. The definitions provided in Section 12-22-10 apply for purposes of this section.
(A) Each machine must be able to connect to a monitoring system via a serial communications port to a location controller meeting the requirements set forth by the department and using a communications protocol provided by the department or its designated agent.
(B) Each machine must be capable of monitoring and storing the following items:
(1) The cumulative total of the following for each twenty-four hour period, from 12:00 a.m. to 12:00 a.m., which may be recorded as a "snapshot" of the specified counters at the beginning and ending of each twenty-four hour period:
(a) cash in, defined as money in dollars and cents;
(b) credits purchased;
(c) credits earned or won;
(d) credits played;
(e) credits paid;
(f) cash paid.
(2) The following security events and the time and date of such events:
(a) game door open;
(b) coin-bill/drop door open;
(c) power off/on;
(d) off line/on line to the location controller;
(e) game control board access (logic area).
(C) Each machine must contain Erasable Programmable Read Only Memory (EPROM) containing all game logic, and contain RAM (Random Access Memory) containing all counters and meters in electronic format, or such other technology as may later be designated by the department.
(D) Each machine is not allowed to operate if it is not connected in on-line mode to a location controller meeting the requirements set forth by the department.
(E) A machine must collect the data required in this chapter and communicate this information to a location controller for storage until requested by the central computer monitoring system. Each security event listed in this chapter may reflect a time and date stamp and the VGMID of the machine.
(F) A machine automatically must disable itself if communication is lost from the location controller. A machine must store this event. A machine must report a disabling event to the location controller when communication is restored.
(G) A machine must be capable of being disabled by the central computer monitoring system or the location controller.
(H) A machine must be capable of being enabled by the central computer monitoring system or by location controller once it has been enabled by the central computer monitoring system.
(I) A machine must be protected from unauthorized interference or tampering by any person or external device so as to not corrupt or suspend the communication signals or transmitted data required for the proper functioning of the machine and the associated location controller.
(J) Each machine must have a surge protector installed on the line that feeds power to the machine and must meet the requirements of the department.
(A) A machine must have electrical and mechanical parts and design principles that do not subject a player to physical hazards.
(B) A machine must have a battery backup or an equivalent for the electronic meters and be capable of maintaining accurate information required by law and regulation for one hundred eighty days after power is discontinued from the machine. The backup device must be kept within the locked logic board compartment of the machine.
(C) A machine must have an on/off switch that controls the electrical current used in the operation of the machine and must be in an accessible place within the interior of the machine.
(D) The operation of each machine must not be adversely affected by static discharge or other electromagnetic interference.
(E) Each machine must have one coin acceptor, either electronic or mechanical, one bill acceptor, either electronic or mechanical, or one of each. Approval letters and test reports of the coin and bill acceptors from other state or federal jurisdictions must be submitted to the department. All coin and bill acceptors are subject to approval by the department.
(F) The internal space of a machine must not be readily accessible when the front door is closed or sealed.
(G) Logic boards and software EPROMs and RAM must be in a separate, locked and sealed area within the machine and must only be accessible only in accordance with guidelines established by the department. The area must be sealed by, and accessible to, the division.
(H) The cash and coin compartment must be contained in a locked area within or attached to the machine. This compartment must be accessible by the machine owner or machine operator.
(I) No switches of any kind, to include but not limited to hardware and software switches, must be installed that alter the pay tables or payout percentages in the operation of a game below the minimum payback of ninety percent, within standard rounding, in which the theoretical payout percentage is determined using standard methods of probability theory. Switches or other devices may be installed to control graphic routines, speed of play, and sound.
(J) A single printing mechanism must be capable of printing an original ticket and retaining an exact, legible copy within the machine. The ticket must record the number of credits, the value of the credit, and a validation number, when credits accrued are printed on a ticket for validation.
(K) The printed ticket is the only allowable method for issuing payouts. Hoppers are prohibited.
(L) A clearly visible identification plate must appear on the front exterior of the machine that contains the manufacturer, the manufacturer's serial number, the model number, the VGMID, and the name of the machine owner. This plate must not be removed. This identification is a condition precedent before the machines may be operated on location. Failure to comply with this requirement subjects the violator to the penalty and enforcement provisions of Chapter 22 of Title 12 of the 1976 Code including the provision of Section 12-22-1380 relating to the time such penalties apply without regard to stays.
(M) Equipment must be installed in a manner that enables a machine to communicate with the department's central computer monitoring system via the location controller using a communications protocol provided to each manufacturer of machines and location controllers provided by the department or its designated agent.
Software Requirements
(A) Each machine must maintain electronic accounting meters at all times, regardless of whether the machine is being supplied with power. Each meter must be capable of maintaining totals no less than eight digits in length for the information required by the law and by regulation of the department.
(B) Electronic meters must record the cumulative total of cash in, credits purchased, credits paid, credits earned/won, cash paid, and credits played, per each twenty-four hour period, from 12:00 a.m. to 12:00 a.m. This information may be recorded as a snapshot of the specified counters at the beginning and ending of each twenty-four hour period.
(C) Electronic meters also must record security events, with the time and dates, to include game door open, coin-bill/drop door open, power off/on, off line/on line to the location controller, and game control board access.
(D) No machine may have a mechanism that an error will cause the electronic accounting meters to automatically clear. Clearing of the electronic accounting meters may be completed only after notification and approval by the department and supervised by the division.
(E) Each machine must have a random number generator that determines the occurrence of a specific card or a specific number to be displayed on the video screen. A selection process is considered random if it meets all the following requirements:
(1) each card position or each number position satisfies the ninety-nine percent confidence limit using the standard chi-squared analysis;
(2) each card or number position does not produce a significant statistic with regard to producing patterns of occurrences. Each card or number position is considered random if it meets the ninety-nine percent confidence level with regard to the runs test or any similar pattern testing statistic;
(3) each card or number position is independently chosen without regard to any other card or number drawn within that game play. This test is the "correlation test". Each pair of card or number positions is considered random if they meet the ninety-nine percent confidence level using standard correlation analysis; and
(4) each card or number position meets the serial correlation test, meaning that it is independently chosen without reference to the same card or number position in the previous game. Each card or number position is considered random if it meets the ninety-nine percent confidence level using standard serial correlation analysis.
(F) All costs associated with the machines, to include upgrades or retrofits, in order for such machines to meet the requirements of the laws and regulations of this State are the responsibility of the machine owner.
(A) For purposes of this part, multiplayer units are divided into two general groups:
(1) units that share some common components (Group I); and
(2) units that share most components (Group II).
(B) Group I and Group II units are based on the common principal that they both try to accurately mimic live table play. Both groups may consist of a number of player stations, generally either three or five player units per machine, and some type of dealer display. Both groups of games allow the players to wager on the next hand to be played and the object of the game, and the payout table is based on the player beating the dealer's hand. The player stations and dealer draw from a common deck of cards. Neither of these groups contains any program routines that allow the player or device to gain an unfair advantage or to cheat the device or player.
(C) Group I and Group II units share common elements. The following define the difference in the two groups of multiplayer units:
(1) Group I Units: Group I units have individual logic boards containing player station EPROMs and RAM containing all meter and event information for the individual station, as well as master logic boards in the dealer station containing master meters and the random number generation software used commonly by all of the player stations.
(2) Group II Units: Group II units often do not have any game or logic boards in the individual player stations. The program and game memory are stored in the dealer's station. The player's stations are generally "Dumb Terminals" containing player input buttons and coin or bill acceptors. This group of terminals sends and receives all information directly from the dealer's station. Generally, these stations do not have separate power switches. All electrical leads are fed from the dealer's station to the individual player's station and all game display information is shown on the common video display. The dealer's station controls the operation of the game including the random number generator, all meter information, all display functions, all communications with the central system, all event detection and storage logic, and all processor units and EPROMs used for the game. Individual terminals are not in "direct" communication with the central system, but rather use the dealer's station as a "head of string" device for each of the individual stations. The dealer's station contains all individual station meters as well as master meters for the entire group.
(D) A multiplayer unit must be handled in one of two ways, depending on whether it is a Group I machine or a Group II machine. Implementation of either method does not require modifications of the communications protocol or operational changes for either the department or the individual locations. Both methods may be handled entirely in the program code of the individual machines.
(1) Group I unit stations as described above must be wired as if they are separate machines. Each player station must have an optical connection and each station is responsible for its own communications. All meter and event data must be stored on the individual stations and be transmitted to the system on demand. EPROM signature calculations must include the dealer's station code, but each station must perform individual calculations and transmit the results independently of each other. All security, accounting, cash ticket, and event reporting functions must be supported in full.
(2) Group II games must be set up with a dedicated phone line and location controller in the same manner as every other licensed establishment in the State. The fiber optics must leave the location
(E) The department may handle on an individual basis, any type of multiplayer units that does not fit in either category Group I or Group II. Other multiplayer units are required to meet all applicable programming, communications, and security rules and regulations.
SECTION 11. Section 12-54-40(H) of the 1976 Code is amended to read:
"(H) A person who:
(1) must obtain a license or purchase stamps for identification purposes, and who fails to obtain or display the license properly, or fails to affix the stamps properly; or
(2) to must comply with statutory provisions and fails to do so, is subject to a penalty of not less than fifty dollars nor more than five hundred dollars for each failure. For failure to obtain or display a license as prescribed in Sections 12-21-2720 and 12-21-2730 12-22-320, the penalty is fifty two hundred dollars for each failure to comply."
SECTION 12. Section 12-54-40(M) of the 1976 Code is amended to read:
"(M) A machine owner or distributor, as defined in Article 20, Chapter 21 of this title, who allows or causes a machine to be operated without a metering device, or who wilfully places a machine on location or who wilfully allows or causes a machine to be operated with a metering device that does not accurately record the information required under Article 20, Chapter 21 of this title is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than ten years, without benefit of probation, parole, or suspension of sentence, and in addition may be fined not more than twenty-five thousand dollars. A machine owner or distributor, as defined in Chapter 22 of this title, who willfully places a machine on location, or
SECTION 13. Section 16-19-60 of the 1976 Code is amended to read:
"Section 16-19-60. Nothing in Section 16-19-40 or 16-19-50 shall extend to coin-operated nonpayout machines with a free play feature; provided, that nothing herein shall authorize the licensing, possession, or operation of any machine which disburses money to the player. Nothing in this section prohibits regulation of video games pursuant to Article 20, Chapter 21 of Title 12, the Video Games Machines Act, including the prohibition on payoffs and location of these machines in counties where such payouts and machines are prohibited under the local option provisions of that article."
SECTION 14. Chapter 19, Title 16 of the 1976 Code is amended by adding:
"Section 16-19-65. (A) It is unlawful for any person to keep or operate on his premises or permit to be kept or operated on his premises within this State any vending or slot machine, punch board, pull board, or other device pertaining to games or chance of whatever name or kind, including those machines, boards, or other devices that display different pictures, words, or symbols, at different plays or different numbers, whether in words or figures or, which deposit tokens or coins at regular intervals or in varying numbers to the player or in the machine, but the provisions of this section do not extend to coin-operated nonpayout pin tables, in-line pin games, and video games with free play feature which meet the technical requirements provided for in Article 9, Chapter 22 of Title 12, or to automatic weighing, measuring, musical, and vending machines which are constructed as to give a certain uniform and fair return in value for each coin deposited and in which there is no element of chance.
(B) Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned for a period of not more than one year, or both.
(C) Any vending or slot machine, punch board, or other device pertaining to games of chance prohibited by this section must be seized by any law enforcement officer and at once taken before any magistrate
Section 16-19-66. (A) It is unlawful for a person to operate, cause to operate, or attempt to operate an automatic vending machine, slot machine, coin-box telephone, or other receptacle designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service by means of a slug or any false, counterfeited, mutilated, sweated, or foreign coin, or by any means not lawfully authorized by the owner, lessee, or licensee of the receptacle.
(B) It is unlawful for a person to take, obtain, or receive from or in connection with any receptacle designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service any goods, wares, merchandise, gas, electric current, or other article of value or the use or enjoyment of any telephone or telegraph facilities, or service, or of any musical instrument, phonograph, or other property, without depositing in and surrendering to the receptacle lawful coin of the United States of America in the amount required by the owner, lessee, or licensee of the receptacle.
(C) A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined in the discretion of the court or imprisoned not more than two years.
Section 16-19-67. A person who, with intent to cheat or defraud the owner, lessee, licensee, or other person entitled to the content of an automatic vending machine, slot machine, coin-box telephone, or other receptacle, depository, or contrivance designed to receive lawful coin or currency of the United States of America in connection with the sale, use, or enjoyment of property or service or who, knowing that the same is intended for unlawful use, manufactures for sale, or sells or gives away any slug, device, or substance intended or calculated to be placed or deposited in the automatic vending machine, slot machine, coin-box telephone, or other receptacle, depository, or contrivance is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than five years."
SECTION 15. Sub-item (3) of Section 61-4-580 of the 1976 Code is amended to read:
"(3) permit gambling or games of chance which is not authorized by Chapter 22 of Title 12."
SECTION 16. (A) The provisions of Chapter 22, Title 12 as added by this act apply to any and all licenses to be issued on or after December 1, 1999.
(B)(1) By January 31, 2000, a person who is licensed pursuant to Section 12-21-2728(A)(3) on November 30, 1999, for a license period which expires on May 31, 2000, shall apply for a new license to be issued in accordance with Chapter 22, Title 12. The person may continue to do business under the license issued under Section 12-21-2728(A)(3) until the Department of Revenue makes a determination regarding whether the person should be licensed under the provisions of Chapter 22, Title 12.
(2)(a) Upon a favorable licensing determination, the department shall issue a new license with an expiration date in the year 2002 established in accordance with the provisions of Section 12-22-320(D).
(b) The license fees shall be prorated based upon the expiration date for the new license and any unused portion of the license fee for the license which expires on May 31, 2000 shall be applied towards payment of the fee for the new license.
(C)(1) By July 31, 2000, a person who is licensed pursuant to Section 12-21-2728(A)(3) on November 30, 1999, for a license period which expires on May 31, 2001, shall apply for a new license to be issued in accordance with Chapter 22, Title 12. The person may continue to do business under the license issued under Section 12-21-2728(A)(3) until the Department of Revenue makes a determination regarding whether the person should be licensed under the provisions of Chapter 22, Title 12.
(2)(a) Upon a favorable licensing determination, the department shall issue a new license with an expiration date in the year 2003 established in accordance with the provisions of Section 12-22-320(D).
(b) The license fees shall be prorated based upon the expiration date for the new license and any unused portion of the license fee for the license which expires on May 31, 2001 shall be applied towards payment of the fee for the new license.
(3) Upon an unfavorable licensing determination, the department shall revoke the license issued pursuant to Section 12-21-2728(A)(3) and shall issue a prorated refund to the person for the remainder of the license period.
(D) By December 31, 1999, a person who is required to be licensed as a machine operator and who is engaged in business at a location that is licensed pursuant to Chapter 36, Title 12 on November 30, 1999,
(E) By December 31, 1999, a person who is required to be licensed as a machine operator shall apply for an establishment license issued pursuant to the provisions of Chapter 22, Title 12 for a location that is licensed pursuant to Chapter 36, Title 12 on November 30, 1999.
(F) A machine license issued pursuant to Section 12-22-21-2720(A)(3) shall continue in effect until the expiration of the original license period provided a machine must meet all requirements imposed by Chapter 22 of Title 12 when these requirements take effect.
(G) The department, at its discretion and for the efficient administration of the law, may prorate licenses in any manner to implement or change the expiration date established in this section and to stagger the issuances of the licenses by county or by any other method considered appropriate by the department.
SECTION 17. A. The application of Articles 19 and 20, Chapter 21, Title 12 is suspended prospectively, except as provided in Section 16. To the extent that regulations promulgated pursuant to the authority of Articles 19 and 20, Chapter 21, Title 12 are not inconsistent with Section 10, those regulations remain in effect until and unless otherwise modified or repealed pursuant to the Administrative Procedures Act.
B. Articles 19 and 20, Chapter 21, Title 12 are repealed effective December 31, 2000.
SECTION 18. Article 1, Chapter 1, Title 32 of the 1976 Code is amended by adding:
"Section 32-1-60. Beginning on the effective date of this section, the provisions of Sections 32-1-10, 32-1-20, and 32-1-30 apply only to those gambling activities not authorized by law.
SECTION 19. Article 20, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2805. (A) When the department or the division is notified in writing that an establishment, owner or distributor is or has been in violation of this article or article 19 of this chapter and that one or more persons have notice or knowledge of a violation, the department or division shall have thirty days from the date of the receipt of the notice to initiate and enforcement action consistent with this chapter and Title 12.
(B) If the department or division affirmatively declines to act or fails to initiate an enforcement action for the violation within thirty days, the person or persons who have knowledge of the violation may serve written notice upon the department of their intention to file an a request for a proceeding to enforce the violations of the penalty provisions of this chapter in the name of the department or division.
(C) Within thirty days of the receipt of the notice from the person or persons with knowledge of the violation, the department or division shall forward the notice of intent to file a request for a proceeding to the Office of the Attorney General who shall determine:
(1) if the person or persons with knowledge of the violation has sufficient knowledge, expertise and experience to adequately represent the interests of the State, the department and the division in the action; and
(2) if the person or persons with knowledge of the violation are willing to advance all costs and expenses to be incurred in the proceeding.
(D) Upon written certification of Office of Attorney General that these conditions have been met, the person or persons with knowledge of the violation may proceed to commence a proceeding in the Administrative Law Judge Division under the Administrative Procedures Act.
(E) If the Office of the Attorney General denies certification or fails to act on a person's notice within thirty days of receipt, the person or persons with knowledge of a violation of this chapter may move to commence a proceeding before the Administrative Law Judge Division for enforcement of the penalty for the violation.
(F) If no recovery or common fund is recovered in the proceeding the person or persons with knowledge of a violation bears or bear sole responsibility for all costs and expenses incurred and the State bears no liability for reimbursement for any costs of litigation or attorneys fees. Any common fund recovered in the proceeding may go to reimburse actual costs and expenses incurred. The administrative law judge must set the legal fees in accordance with prevailing national standards for hourly attorney's fee rates. No contingency fees may be awarded as a percentage of any common funds recovered.
SECTION 20. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the
SECTION 21. The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.
SECTION 22. (A) It is the intent of the General Assembly in providing for the statewide referendum required by this act to allow an affirmative vote of the qualified electors of this State to serve as a trigger for the operation of an effective clause, as contained in this act, duly passed by the General Assembly. The result of the referendum is a contingency that is certain, based on the result of a referendum, and will thereby cause some parts of this act to take effect and others not to take effect. All provisions in this act are enactments of the General Assembly that meet the formalities of an act required under Article III of the Constitution of this State which provides for the legislative power in the government of this State. While Article III does not provide for a referendum as part of the legislative process, neither does it prohibit a referendum in which the result is a certain contingency that determines which parts of an act take effect. As the legislative power of the General Assembly is limited only by that which is specifically prohibited in the Constitution of this State and the Constitution of the United States, the General Assembly finds that the referendum required pursuant to this act is a valid exercise of the legislative power of this State.
(B) The General Assembly by enactment of this act has no intent to enact any provision allowed by 15 U.S.C. 1175, commonly referred to
(C) It is the intent of the General Assembly that the provisions of this act shall not be construed to:
(1) affect any pending lawsuit, as prescribed in SECTION 21; or
(2) affect any provision of current law, unless or until it is specifically modified or expressly repealed as provided in this act.
SECTION 23. Upon approval by the Governor, this act shall take effect in the following manner:
(A) Parts II, IV, V, and VI take effect upon approval by the Governor;
(B) Article 9 of Chapter 22, Title 12, as added in PART III, SECTION 10, takes effect July 1, 1999 except that Sections 12-22-1020 and 12-22-1030 take effect when the remaining provisions of PART III take effect as provided in subsection (E), then Article 9 of Chapter 22, Title 12 is repealed on the date that the State Board of Canvassers certifies a majority "no" vote in the referendum provided in Part II of this act. Section 12-22-740, as added in Part III, SECTION 10, takes effect June 1, 1999. If the remaining provisions of Part III do not take effect, then Section 12-22-740 is repealed on the date that the State Board of Canvassers certifies a majority "no" vote in the referendum provided in Part II of this act;
(C) Part I takes effect July 1, 2000;
(D) If Part I takes effect, the South Carolina Department of Revenue, upon application, shall refund to any person holding a license for the operation of video game machines, on a pro rata basis, the portion of any license fee previously paid to the department for licenses that extend beyond June 30, 2000;
(E) If the State Board of Canvassers certifies a majority "yes" vote in the referendum provided in Part II of this act, then Part I does not take effect, and the remaining provisions of Part III take effect on December 1, 1999 and SECTION 19 OF PART IV is repealed, except that the provisions of SECTION 21 shall apply to any pending civil actions brought under Section 12-21-2805.
Amend title to conform.
/s/ Thomas Moore /s/ Terry Haskins /s/ Wes Hayes /s/ Greg Delleney /s/ Ernie Passailaigue /s/ Rick Quinn On Part of the Senate. On Part of the House.
, and a message was sent to the House accordingly.
I voted for Free Conference Powers on H.3002, the video poker bill compromise. This Bill is not what I prefer on this issue but I believe it is the best that can be passed in the legislature. My greatest concern is the 1999 referendum. This will cost a million dollars and will give the video poker industry a great advantage as opposed to a 2000 referendum due to the size of the turnout.
At 1:02 P.M., on motion of Senator DRUMMOND, the Senate receded from business until 2:30 P.M.
The Senate reassembled at 2:38 P.M., and was called to order by the PRESIDENT.
At 2:38 P.M., on motion of Senator ALEXANDER, the Senate receded from business not to exceed twenty minutes.
At 2:56 P.M., the Senate resumed.
On motion of Senator DRUMMOND, with unanimous consent, the Senate agreed to go into Executive Session.
Columbia, S.C., June 23, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that it has requested and been granted Free Conference Powers and has appointed Reps. Allison, H. Brown and Harrell of the Committee of Free Conference on the part of the House on H. 3696:
Received as information.
Columbia, S.C., June 23, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that it has adopted the Report of the Committee of Free Conference on H. 3696:
Very respectfully,
Speaker of the House
Received as information.
The Report of the Committee of Free Conference having been adopted by both Houses, ordered that the title be changed to that of an Act and the Act enrolled for Ratification.
A message was sent to the House accordingly.
Columbia, S.C., June 23, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that it has requested and been granted Free Conference Powers and has appointed Reps. Allison, H. Brown and Harrell of the Committee of Free Conference on the part of the House on H. 3697 (Word version):
Very respectfully,
Speaker of the House
Received as information.
Columbia, S.C., June 23, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that it has adopted the Report of the Committee of Free Conference on H. 3797 (Word version):
Very respectfully,
Speaker of the House
Received as information.
The Report of the Committee of Free Conference having been adopted by both Houses, ordered that the title be changed to that of an Act and the Act enrolled for Ratification.
A message was sent to the House accordingly.
S. 904 (Word version) -- Senator Courson: A CONCURRENT RESOLUTION TO CONGRATULATE BOYD MANAGEMENT ON ITS DYNAMIC EXPANSION SINCE 1985 AND ON ITS PLANS FOR NEW HEADQUARTERS IN NORTHEAST COLUMBIA.
Returned with concurrence.
Received as information.
Columbia, S.C., June 22, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 3591 (Word version) -- Reps. Koon, R. Smith, Sharpe and Riser: A JOINT RESOLUTION TO PROVIDE FOR A THREE-YEAR PILOT PROGRAM IN ALL GAME ZONES OF THE STATE TO SHORTEN THE HUNTING SEASON FOR RACCOONS TO A PERIOD FROM THANKSGIVING DAY THROUGH MARCH 1; TO ALLOW HUNTING WITH DOGS ONLY FOR THE REMAINDER OF THE YEAR; AND TO IMPOSE A MINIMUM FINE OF FIVE HUNDRED DOLLARS FOR A PERSON VIOLATING THESE PROVISIONS, WITH EIGHTY PERCENT OF THE FINE RETAINED BY THE DEPARTMENT OF NATURAL RESOURCES AND USED FOR LAW ENFORCEMENT AND TWENTY PERCENT OF THE FINE FORWARDED TO THE APPROPRIATE GAME FUND IN THE COUNTY IN WHICH THE VIOLATION OCCURRED.
and has ordered the Joint Resolution Enrolled for Ratification.
Very respectfully,
Speaker of the House
Received as information.
Columbia, S.C., June 22, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 4196 (Word version) -- Reps. Witherspoon, Barfield, Edge, Keegan, Kelley and Miller: A BILL TO AMEND ACT 612 OF 1980, RELATING TO THE COMPENSATION OF MEMBERS OF THE HORRY COUNTY BOARD OF EDUCATION, SO AS TO INCREASE THE ANNUAL COMPENSATION OF MEMBERS OF THE BOARD AND PROVIDE WHEN THE INCREASE IS EFFECTIVE.
and has ordered the Bill Enrolled for Ratification.
Very respectfully,
Speaker of the House
Received as information.
S. 3 (Word version) -- Senators Rankin, Elliott, Moore, Drummond, Holland, Saleeby, J. Verne Smith, Land, Setzler, Leventis, Bryan, Matthews, Patterson, McGill, O'Dell, Passailaigue, Washington, Reese, Ford, Glover, Jackson, Lander, Short, Hutto, Anderson, Elliott, Ryberg, Giese, Wilson, Fair, Hayes, Leatherman and Russell: A BILL TO AMEND CHAPTER 19, TITLE 16, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CRIMES AND OFFENSES, BY ADDING SECTION 16-19-180 SO AS TO PROHIBIT THE OPERATION OF CASINO GAMBLING ON BOATS, SHIPS, OR OTHER WATERCRAFT WHICH EMBARK, SAIL, AND DISEMBARK WITHIN SOUTH CAROLINA'S BORDERS.
Senator RANKIN asked unanimous consent to take up the Bill for immediate consideration.
Senator FORD objected.
At 3:52 P.M., Senator DRUMMOND assumed the Chair.
Senator ALEXANDER rose to a Point of Personal Privilege.
At 3:54 P.M., the PRESIDENT assumed the Chair.
Senator HOLLAND addressed the members of the Senate.
On motion of Senator DRUMMOND, the seal of secrecy was removed, so far as the same relates to appointments made by the Governor and the following names were reported to the Senate in open session:
Having been reported favorably from Executive Session, the following appointments were confirmed in open session:
Initial Appointment, South Carolina Commission on Archives and History, with term coterminous with Governor:
At-Large:
William R. Bauer, 1706 Crestwood Dr., Columbia, S.C. 29205 VICE Nancy D. Hawk
Initial Appointment, South Carolina State Board of Financial Institutions, with term to commence June 30, 1998, and to expire June 30, 2002:
Consumer Financial Institutions:
Naomi Hall Dreher, 3614 Oscar Street, Columbia, S.C. 29204 VICE Kenneth A. Boiter
Initial Appointment, South Carolina Commission on Women, with term to commence October 18, 1997, and to expire October 18, 2001:
At-Large:
Leon H. Ginsberg, 318 Leaning Tree Road, Columbia, S.C. 29223-3011 VICE Kristin S. Maguire
Initial Appointment, South Carolina Commission on Women, with term to commence October 19, 1998, and to expire October 19, 2002:
At-Large:
Mary Baskin Waters, 742 Albion Road, Columbia, S.C. 29205 VICE Maeberta Bob
Initial Appointment, South Carolina State Commission on Higher Education, with term to commence July 1, 1996, and to expire July 1, 2000:
3rd Congressional District:
Dr. Larry A. Jackson, 604 West Cambridge Avenue, Greenwood, S.C. 29649 VICE W. David Maxwell
Reappointment, South Carolina Commission on Archives and History, with term coterminous with Governor:
At-Large:
William L. Kinney, Jr., P.O. Box 656, Bennettsville, S.C. 29512-0656
Initial Appointment, South Carolina Commission on Women, with term to commence October 18, 1998, and to expire October 18, 2002:
At-Large:
Ann Sherwood Timberlake, 105 South Gregg Street, Columbia, S.C. 29205 VICE Laurene W. Davis
Initial Appointment, South Carolina Commission on Women, with term to commence October 18, 1997, and to expire October 18, 2001:
At-Large:
Ms. Susan Romaine, 7 Conquest Avenue, Sullivan's Island, S.C. 29482 VICE Clara Holland Heinsohn
Initial Appointment, South Carolina Commission on Minority Affairs, with term to commence June 30, 1997, and to expire April 30, 2001:
1st Congressional District:
Thaddeus J. Bell, 3656 Col. Vanderhorst Circle, Mount Pleasant, S.C. 29464 VICE Wilma Sykes Brown
Initial Appointment, Governing Board of the Department of Natural Resources, with term to commence July 1, 1996, and to expire July 1, 2000:
4th Congressional District:
Joab M. Lesesne, Wofford College, 429 North Church Street, Spartanburg, S.C. 29303 VICE George G. Graham
Initial Appointment, South Carolina Commission for the Blind, with term to commence May 19, 1998, and to expire May 19, 2002:
4th Congressional District:
Cynthia Estepp Rhames, 260 Haslett Street, Spartanburg, S.C. 29302 VICE Rev. Oliver H. Willis
Initial Appointment, South Carolina Commission for the Blind, with term to commence May 19, 1996, and to expire May 19, 2000:
At-Large:
John Franklin Shuler, 250 Keitt Street, Orangeburg, S.C. 29115 VICE Reginald D. Wilson, Jr.
Initial Appointment, South Carolina Commission for the Blind, with term to commence May 19, 1997, and to expire May 19, 2001:
2nd Congressional District:
Thomas L. Williams, 2686 Highway 278, Barnwell, S.C. 29812 VICE V. Al Pakalnis
Initial Appointment, South Carolina Commission for the Blind, with term to commence May 19, 1998, and to expire May 19, 2002:
5th Congressional District:
Lynn Mann Hornsby, 1416 Thornwell Avenue, Rock Hill, S.C. 29732 VICE Christopher B. Yates
Initial Appointment, South Carolina Commission for the Blind, with term to commence May 19, 1996, and to expire May 19, 2000:
3rd Congressional District:
Jaqueline Faye Brown, Route 1, Box 62, Plum Branch, S.C. 29845 VICE Nancy W. Knowles
Initial Appointment, South Carolina Commission for the Blind, with term to commence May 19, 1998, and to expire May 19, 2002:
6th Congressional District:
Ronald Benjamin, 1000 Clements Street, Florence, S.C. 29501 VICE Barbara D. Leonard
Initial Appointment, South Carolina Commission for the Blind, with term to commence May 19, 1998, and to expire May 19, 2002:
1st Congressional District:
William Parnell Diggs, 8845-B Chandler Drive, Surfside Beach, S.C. 29575 VICE E. Lynn W. Smith
Having received a favorable report from the Clarendon County Delegation, the following appointment was confirmed in open session:
Initial Appointment, Clarendon County Magistrate, with term to commence April 30, 1998, and to expire April 30, 2002:
Ben Geer Alderman, Jr., P.O. Box 580, Manning, S.C. 29102 VICE Leigh Hughes Smith
Having received a favorable report from the Berkeley County Delegation, the following appointments were confirmed in open session:
Reappointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Ervin Brown, 1133 Schurlknight Road, St. Stephen, S.C. 29479
Reappointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
David G. Brown, 5928 Commonwealth Circle, Hanahan, S.C. 29406
Reappointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Ellen L. Karesh, 106 Braeford Court, Goose Creek, S.C. 29445
Reappointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
McGregor T. Dennis, P.O. Box 40, Bonneau, S.C. 29431
Reappointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Perry L. Murray, 108 Belknap Road, Goose Creek, S.C. 29445
Reappointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Elizabeth S. Harper, P.O. Box 875, Moncks Corner, S.C. 29461
Reappointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Edward L. Sessions, 538 Redbank Road, Goose Creek, S.C. 29445
Reappointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Harry Lee Wright, 1619 Old Highway 6, Cross, S.C. 29436
Initial Appointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Joseph Hermon Jefferson, Jr., 1375 Colonel Maham Drive, Pineville, S.C. 29468 VICE Thomas F. Mitchum
Initial Appointment, Berkeley County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Robert C. Mitchum, Sr., 161 Nobles Lane, Cordsville, S.C. 29464 VICE Oliver Levine
Having received a favorable report from the Aiken County Delegation, the following appointments were confirmed in open session:
Reappointment, Aiken County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Carolyn P. Williams, 672 Kershaw Street, Aiken, S.C. 29801
Reappointment, Aiken County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Roger E. Edmonds, 630 Hampton Circle, Belvedere, S.C. 29841
Reappointment, Aiken County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Charles Terry Carter, 418 Eagle Street, Graniteville, S.C. 29829
Reappointment, Aiken County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Donna H. Williamson, 13 Hollow Creek Circle, Salley, S.C. 29137
Having received a favorable report from the Lancaster County Delegation, the following appointment was confirmed in open session:
Initial Appointment, Lancaster County Magistrate, with term to commence April 30, 1998, and to expire April 30, 2002:
Debra C. Dawkins, 304 Dixon Road, Lancaster, S.C. 29720 VICE Theresa B. Rollings
Having received a favorable report from the Fairfield County Delegation, the following appointment was confirmed in open session:
Reappointment, Fairfield County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
John J. Hood, Jr., P.O. Box 423, Winnsboro, S.C. 29180
Having received a favorable report from the Marlboro County Delegation, the following appointments were confirmed in open session:
Reappointment, Marlboro County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Ronald K. McDonald, 5646 Allen Ridge Road, Blenheim, S.C. 29516
Reappointment, Marlboro County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003:
Sidney McLaurin Rogers, 114 Church Street, Clio, S.C. 29525
On motion of Senators ALEXANDER, DRUMMOND, ANDERSON, BAUER, BRANTON, BRYAN, CORK, COURSON, COURTNEY, ELLIOTT, FAIR, FORD, GIESE, GLOVER, GREGORY, GROOMS, HAYES, HOLLAND, HUTTO, JACKSON, LAND, LEATHERMAN, LEVENTIS, MARTIN, MATTHEWS, McCONNELL, McGILL, MESCHER, MOORE, O'DELL, PASSAILAIGUE, PEELER, RANKIN, RAVENEL, REESE, RUSSELL, RYBERG, SALEEBY, SETZLER, SHORT, J. VERNE SMITH, THOMAS, WALDREP, WASHINGTON and WILSON, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mr. Eric Patterson, beloved son of our friend and colleague, Senator PATTERSON, of Columbia, S.C.
At 3:58 P.M., on motion of Senator RAVENEL, the Senate adjourned to meet tomorrow at 11:00 A.M.
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